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My 3 Favorite Companies from the Best Dividend Paying Stock List
Posted by: Dividend (IP Logged)
Date: June 1, 2013 10:49AM

I love it to screen stocks by value and fundamentals. It gives me the possibility to evaluate stocks and compare them by its data. Especially in times of a low interest environment, it’s more important to select cheap dividend paying stocks with a proven history.

I’ve created a quick dividend list (from low-yield to high-yield paying stocks) of stocks with interesting performance and valuation figures. Stocks from that list are mid- and large caps (market capitalization of more than USD 1 billion) with double-digit long-term earnings growth rates. The companies are traded at AMEX, NYSE, Nasdaq and part of the Dow Jones, S&P 500 or Nasdaq Composite. The list is selected by the following criteria and sorted by dividend yield.

Market Capitalization: > 1 Billion
Price/Earnings Ratio: > 0< 100
Dividend Yield: > 3< 20
Return on Investment: > 10< 100
Operating Margin: > 10< 100
10 Year Revenue Growth: > 8< 200
10 Year EPS Growth: > 10< 100

This time, only 25 companies fulfilled the above mentioned criteria. Eight of the results are high-yields and 17 got a buy or better rating from brokerage analysts.

Here are my most promising stocks from the list:

Companhia de Bebidas das Americas (ABV) has a market capitalization of $119.23 billion. The company employs 51,299 people, generates revenue of $15.278 billion and has a net income of $5.045 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.389 billion. The EBITDA margin is 48.36 percent (the operating margin is 43.00 percent and the net profit margin 33.02 percent).

Financial Analysis: The total debt represents 5.80 percent of the company’s assets and the total debt in relation to the equity amounts to 10.89 percent. Due to the financial situation, a return on equity of 38.58 percent was realized. Twelve trailing months earnings per share reached a value of $1.59. Last fiscal year, the company paid $1.36 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.93, the P/S ratio is 8.12 and the P/B ratio is finally 9.01. The dividend yield amounts to 3.41 percent and the beta ratio has a value of 0.96.
Novartis AG (NVS)
has a market capitalization of $176.33 billion. The company employs 127,724 people, generates revenue of $57.561 billion and has a net income of $9.618 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16.848 billion. The EBITDA margin is 29.27 percent (the operating margin is 20.00 percent and the net profit margin 16.71 percent).

Financial Analysis: The total debt represents 15.88 percent of the company’s assets and the total debt in relation to the equity amounts to 28.55 percent. Due to the financial situation, a return on equity of 14.09 percent was realized. Twelve trailing months earnings per share reached a value of $3.91. Last fiscal year, the company paid $2.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.35, the P/S ratio is 3.39 and the P/B ratio is finally 2.56. The dividend yield amounts to 3.32 percent and the beta ratio has a value of 0.56.

Chevron (CVX) has a market capitalization of $238.01 billion. The company employs 62,000 people, generates revenue of $241.909 billion and has a net income of $26.336 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.975 billion. The EBITDA margin is 24.79 percent (the operating margin is 19.15 percent and the net profit margin 10.89 percent).

Financial Analysis: The total debt represents 5.23 percent of the company’s assets and the total debt in relation to the equity amounts to 8.93 percent. Due to the financial situation, a return on equity of 20.30 percent was realized. Twelve trailing months earnings per share reached a value of $13.23. Last fiscal year, the company 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 9.28, the P/S ratio is 1.00 and the P/B ratio is finally 1.78. The dividend yield amounts to 3.20 percent and the beta ratio has a value of 0.77.

Take a closer look at the full table of the best dividend paying stocks. The average price to earnings ratio (P/E ratio) amounts to 13.80 while the dividend yield has a value of 4.47 percent. Price to book ratio is 2.89 and price to sales ratio 2.58. The operating margin amounts to 26.80 percent. The earnings per share grew by 21.09 yearly over the past decade and sales by 19.96 percent.

Related Stock Ticker Symbols:
SCCO, BTE, WPZ, ARLP, EPB, ROSYY, VIV, YZC, VALE, STO, GRMN, MBT, CHL, NEM, QSII, BBL, STX, BASFY, CEO, ABV, BHP, NVS, POT, SUHJY, CVX, HLF

Selected Articles:
· 10 Cheapest Growth Picks From The Dow Jones Index
· Cheapest Dividend Paying Large Caps As of May 2013
· 20 Best Yielding Stocks From The Share Buyback Achievers Index

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Best Dividend Paying Stock Lists by Dividend Yield – Stock, Capital, Investment.


Stocks Discussed: SCCO, BTE, WPZ, ARLP, EPB, ROSYY, VIV, YZC, VALE, STO, GRMN,
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