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Dividend Aristocrats With Double-Digit Growth Potential
Posted by: Dividend (IP Logged)
Date: May 19, 2012 08:20AM

Best Yielding Dividend Aristocrats With Highest Expected Growth Researched By Dividend Yield - Stock, Capital, Investment. Dividend Aristocrats are stocks with a consecutive dividend growth history of more than 25 years in a row that are selected by the investment information firm McGraw-Hill Companies who creates the Dividend Aristocrats Index. The index measures the performance of 51 large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years. Additional 54 companies with more than 25 years of dividend growth are on the waiting list - They are named Dividend Champions.

I’ve tried to figure out those Dividend Aristocrats with the highest potential in terms of earnings growth. That’s why I screened the investment category by stocks with a five-year average earnings growth of at least 10 percent yearly. 21 companies fulfilled these criteria of which one is a high yield and four yielding over three percent.


Here are my favorite stocks:

Walgreen Company (WAG) has a market capitalization of $27.01 billion. The company employs 176,000 people, generates revenues of $72,184.00 million and has a net income of $2,714.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,393.00 million. Because of these figures, the EBITDA margin is 7.47 percent (operating margin 6.05 percent and the net profit margin finally 3.76 percent).

Financial Analysis: The total debt representing 8.77 percent of the company’s assets and the total debt in relation to the equity amounts to 16.23 percent. Due to the financial situation, a return on equity of 18.56 percent was realized. Twelve trailing months earnings per share reached a value of $2.93. Last fiscal year, the company paid $0.75 in form of dividends to shareholders. The comany raised dividends for 36 consecutive years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.69, P/S ratio 0.38 and P/B ratio 1.91. Dividend Yield: 2.82 percent. The beta ratio is 0.98.

Illinois Tool Works (ITW) has a market capitalization of $25.56 billion. The company employs 65,000 people, generates revenues of $17,786.58 million and has a net income of $2,017.01 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,320.68 million. Because of these figures, the EBITDA margin is 18.67 percent (operating margin 15.35 percent and the net profit margin finally 11.34 percent).

Financial Analysis: The total debt representing 22.19 percent of the company’s assets and the total debt in relation to the equity amounts to 39.83 percent. Due to the financial situation, a return on equity of 20.60 percent was realized. Twelve trailing months earnings per share reached a value of $3.84. Last fiscal year, the company paid $1.40 in form of dividends to shareholders. The comany raised dividends for 48 consecutive years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.96, P/S ratio 1.44 and P/B ratio 2.60. Dividend Yield: 2.68 percent. The beta ratio is 1.18.

V.F. Corporation (VFC) has a market capitalization of $14.66 billion. The company employs 58,000 people, generates revenues of $9,459.23 million and has a net income of $890.39 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,413.70 million. Because of these figures, the EBITDA margin is 14.95 percent (operating margin 13.16 percent and the net profit margin finally 9.41 percent).

Financial Analysis: The total debt representing 22.72 percent of the company’s assets and the total debt in relation to the equity amounts to 46.76 percent. Due to the financial situation, a return on equity of 21.18 percent was realized. Twelve trailing months earnings per share reached a value of $8.05. Last fiscal year, the company paid $2.61 in form of dividends to shareholders. The comany raised dividends for 39 consecutive years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.62, P/S ratio 1.55 and P/B ratio 3.27. Dividend Yield: 2.15 percent. The beta ratio is 0.95.

Take a closer look at the full table of Dividend Aristocrats with biggest growth potential. The average price to earnings ratio (P/E ratio) amounts to 17.25 and forward P/E ratio is 12.56. The dividend yield has a value of 2.45 percent. Price to book ratio is 3.40 and price to sales ratio 1.41. The operating margin amounts to 13.16 percent. The average company from the screen should grow 12.57 percent yearly in earnings over the next half decade.

Related stock ticker symbols:
LEG, EMR, AFL, APD, WAG, MMM, ITW, SWK, PPG, TROW, MHP, DOV, TGT, VFC, HRL, LOW, GWW, CTAS, SHW, FDO, ECL

Selected Articles:
· The Best Yielding Dividend Aristocrats
· 8 Dividend Aristocrats At New 52-Week Highs
· The Safest Dividend Aristocrats
· 14 Dividend Aristocrats With Additional Payout Potential


Stocks Discussed: LEG, EMR, AFL, APD, WAG, MMM, ITW, SWK, PPG, TROW, MHP, DOV, T,
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