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My 3 Favorites from the High Yielding S&P 500 Dividend Aristocrats List
Posted by: Dividend (IP Logged)
Date: November 19, 2012 11:42AM

The S&P 500 Dividend Aristocrats Index is an index created by the well-known credit rating agency Standard & Poor’s. The index measures the performance of 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. In total, 51 companies are subject of the index and can be covered by several exchange traded funds (ETFs). If you have bit cash on your trading account, you don’t need to look for a cheap index copy via ETF. You can buy directly some of these wonderful dividend growth stocks for a $1 trading fee. Below is a nice overview of the 20 best-yielding Dividend Aristocrats of which 10 are currently recommended to buy.

Here are my favorite stocks:

McDonald's (MCD) has a market capitalization of $84.45 billion. The company employs 420,000 people, generates revenue of $27.006 billion and has a net income of $5.503 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.766 billion. The EBITDA margin is 36.16 percent (the operating margin is 31.58 percent and the net profit margin 20.38 percent).

Financial Analysis: The total debt represents 37.89 percent of the company’s assets and the total debt in relation to the equity amounts to 86.87 percent. Due to the financial situation, a return on equity of 37.92 percent was realized. Twelve trailing months earnings per share reached a value of $5.31. Last fiscal year, the company paid $2.53 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.85, the P/S ratio is 3.13 and the P/B ratio is finally 5.97. The dividend yield amounts to 3.66 percent and the beta ratio has a value of 0.41.

Johnson & Johnson (JNJ) has a market capitalization of $191.74 billion. The company employs 117,900 people, generates revenue of $65.030 billion and has a net income of $9.672 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15.993 billion. The EBITDA margin is 24.59 percent (the operating margin is 19.01 percent and the net profit margin 14.87 percent).

Financial Analysis: The total debt represents 17.27 percent of the company’s assets and the total debt in relation to the equity amounts to 34.39 percent. Due to the financial situation, a return on equity of 17.02 percent was realized. Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, the company paid $2.25 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.73, the P/S ratio is 2.95 and the P/B ratio is finally 3.30. The dividend yield amounts to 3.53 percent and the beta ratio has a value of 0.55.

Air Products & Chemicals (APD) has a market capitalization of $16.94 billion. The company employs 18,500 people, generates revenue of $9.611 billion and has a net income of $1.025 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.037 billion. The EBITDA margin is 21.20 percent (the operating margin is 13.34 percent and the net profit margin 10.67 percent).

Financial Analysis: The total debt represents 31.23 percent of the company’s assets and the total debt in relation to the equity amounts to 81.83 percent. Due to the financial situation, a return on equity of 16.30 percent was realized. Twelve trailing months earnings per share reached a value of $4.65. Last fiscal year, the company paid $2.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.19, the P/S ratio is 1.76 and the P/B ratio is finally 2.62. The dividend yield amounts to 3.20 percent and the beta ratio has a value of 1.16.

Take a closer look at the full table of the best yielding Dividend Aristocrats. The average P/E ratio amounts to 19.29 and forward P/E ratio is 14.38. The dividend yield has a value of 4.21 percent. Price to book ratio is 3.89 and price to sales ratio 2.01. The operating margin amounts to 14.01 percent. The average stock has a debt to equity ratio of 0.72.

Related stock ticker symbols:
PBI, T, HCP, ED, LEG, CINF, SYY, NUE, MCD, JNJ, KMB, CLX, WAG, EMR, PG, GPC, ABT, APD, ADP, PEP

Selected Articles:
· The 20 Best Performing Dividend Aristocrats
· The 10 Best And Cheapest S&P 500 Dividend Aristocrats
· 12 Solid Financed Dividend Aristocrats
· 15 Most Profitable Dividend Aristocrats

The Best Yielding Stocks from the S&P 500 Dividend Aristocrats Index Originally Published at “long-term-investments.blogspot.com.”


Stocks Discussed: PBI, T, HCP, ED, LEG, CINF, SYY, NUE, MCD, JNJ, KMB, CLX, WAG,
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