Tuesday, March 29, 2016

4 High-Quality Dividend Growth Stocks With Initial Yields Over 3.5% To Buy And Hold Forever

Dividend growth usually means that a number of positive metrics are being met, and the company can consistently add to the pot of money that is returned to shareholders. 

A stock that offers solid fundamentals, low debt, high returns, a sustainable underlying business...e.g. has a huge possibility to grow dividends in the future.

I've always tried to discover those stocks and introduced hundreds of them in the past. 

Each of them has shown a solid dividend growth history, for decades or a half century.

Today's screen focuses on those stocks that have a solid free cash flow, growth perspectives and an acceptable initial yield while generating double digit returns.

Here are the criteria in detail:


- Market cap that was $3 billion or higher 

- Return on invested capital that was 10% or higher over the past 5 years 
- Net debt to EBITDA that was less than 1.5% 
- Free cash flow yield 6% or higher
- Dividend yield at least 2.5%
- Dividend compounded annual growth rate 5% or higher over the past 10 years 

These are the top yielding results:


Cummins -- Yield: 3.99%

Cummins (NYSE:CMI) employs 55,200 people, generates revenue of $19,110.00 million and has a net income of $1,470.00 million. The current market capitalization stands at $17.02 billion.

Cummins’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,500.00 million. The EBITDA margin is 13.08% (the operating margin is 10.76% and the net profit margin 7.69%).


Financials: The total debt represents 10.83% of Cummins assets and the total debt in relation to the equity amounts to 22.13%. Due to the financial situation, a return on equity of 18.46% was realized by Cummins.


Twelve trailing months earnings per share reached a value of $7.82. Last fiscal year, Cummins paid $3.51 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.49, the P/S ratio is 0.89 and the P/B ratio is finally 2.31. The dividend yield amounts to 3.99%.


Stock Charts:



Long-Term Stock Price Chart of Cummins (CMI)
Long-Term Stock Price Chart of Cummins (CMI)
Long-Term Dividend Payment History of Cummins (CMI)
Long-Term Dividend Payment History of Cummins (CMI)
Long-Term Dividend Yield History of Cummins (CMI)
Long-Term Dividend Yield History of Cummins (CMI)



QUALCOMM -- Yield: 3.72%

QUALCOMM (NASDAQ:QCOM) employs 33,000 people, generates revenue of $25,281.00 million and has a net income of $5,268.00 million. The current market capitalization stands at $77.14 billion.

QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,350.00 million. The EBITDA margin is 29.07% (the operating margin is 22.12% and the net profit margin 20.84%).


Financials: The total debt represents 21.59% of QUALCOMM assets and the total debt in relation to the equity amounts to 34.91%. Due to the financial situation, a return on equity of 14.93% was realized by QUALCOMM.


Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, QUALCOMM paid $1.80 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.09, the P/S ratio is 3.05 and the P/B ratio is finally 2.50. The dividend yield amounts to 3.72%.


Stock Charts:



Long-Term Stock Price Chart of QUALCOMM (QCOM)
Long-Term Stock Price Chart of QUALCOMM (QCOM)
Long-Term Dividend Payment History of QUALCOMM (QCOM)
Long-Term Dividend Payment History of QUALCOMM (QCOM)
Long-Term Dividend Yield History of QUALCOMM (QCOM)
Long-Term Dividend Yield History of QUALCOMM (QCOM)



Boeing -- Yield: 3.69%

Boeing (NYSE:BA) employs 161,400 people, generates revenue of $96,114.00 million and has a net income of $5,176.00 million. The current market capitalization stands at $79.18 billion.

Boeing’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,751.00 million. The EBITDA margin is 9.10% (the operating margin is 7.74% and the net profit margin 5.39%).


Financials: The total debt represents 10.55% of Boeing assets and the total debt in relation to the equity amounts to 157.28%. Due to the financial situation, a return on equity of 68.96% was realized by Boeing.


Twelve trailing months earnings per share reached a value of $7.44. Last fiscal year, Boeing paid $3.82 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.87, the P/S ratio is 0.81 and the P/B ratio is finally 12.43. The dividend yield amounts to 3.69%.


Stock Charts:



Long-Term Stock Price Chart of Boeing (BA)
Long-Term Stock Price Chart of Boeing (BA)
Long-Term Dividend Payment History of Boeing (BA)
Long-Term Dividend Payment History of Boeing (BA)
Long-Term Dividend Yield History of Boeing (BA)
Long-Term Dividend Yield History of Boeing (BA)



Intel -- Yield: 3.49%

Intel (NASDAQ:INTC) employs 107,300 people, generates revenue of $55,355.00 million and has a net income of $11,420.00 million. The current market capitalization stands at $141.63 billion.

Intel’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22,802.00 million. The EBITDA margin is 41.19% (the operating margin is 25.68% and the net profit margin 20.63%).


Financials: The total debt represents 22.00% of Intel assets and the total debt in relation to the equity amounts to 37.11%. Due to the financial situation, a return on equity of 19.53% was realized by Intel.


Twelve trailing months earnings per share reached a value of $2.34. Last fiscal year, Intel paid $0.96 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.76, the P/S ratio is 2.54 and the P/B ratio is finally 2.31. The dividend yield amounts to 3.49%.


Stock Charts:



Long-Term Stock Price Chart of Intel (INTC)
Long-Term Stock Price Chart of Intel (INTC)
Long-Term Dividend Payment History of Intel (INTC)
Long-Term Dividend Payment History of Intel (INTC)
Long-Term Dividend Yield History of Intel (INTC)
Long-Term Dividend Yield History of Intel (INTC)

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