New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Income Investors' Forum
Ideas for Income Investors. High Dividend Stocks, Mutual Funds etc.
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
My 3 Favorites from the 20 Contenders Most Recommended Dividend Contenders List
Posted by: Dividend (IP Logged)
Date: January 9, 2013 09:30AM

Most people think that they don’t have enough money to invest bigger amounts into the stock market. They could only provide a few hundred bucks per month to stock trading. I tell you that should be enough. If you are also a young person with an investment horizon of more than 20 years, you should make a few hundred thousand dollars from these regular savings.

The most important item for wealth is growth. Only growth lifts you up to the next level of investing. Sure it will take a lot of time if you see the first results. You only need to be disciplined.

Because I talk so much about growth, I want to show you some good dividend growth stocks. Today I highlight the second income growth category also named as Dividend Contenders. Those stocks raised dividends over a period of more than 10 years but less than 25. Exactly 185 companies fulfilled these criteria. Dividend Champions surpass this by more than 25 years of uninterrupted growth. But they are also the most expensive stocks you can consider. High quality has a good price.

I made a list of the 20 best recommended Contenders with a higher capitalization. I often choose bigger capitalized stocks because I think that they have a more diversified business model and imply less risk. Don’t invest like a blind dog. Please make your own thoughts about the companies; it’s your money you invest. My work here is only a first step of research and a source for ideas.

Below the 20 most recommended Dividend Contenders are three with a higher yield over 3 percent. Five have a strong buy rating.

Here are my favorite stocks:

CVS Caremark (CVS) has a market capitalization of $62.15 billion. The company employs 202,000 people, generates revenue of $107.100 billion and has a net income of $3.488 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.898 billion. The EBITDA margin is 7.37 percent (the operating margin is 5.91 percent and the net profit margin 3.26 percent).

Financial Analysis: The total debt represents 15.52 percent of the company’s assets and the total debt in relation to the equity amounts to 26.32 percent. Due to the financial situation, a return on equity of 9.22 percent was realized. Twelve trailing months earnings per share reached a value of $2.98. Last fiscal year, the company paid $0.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.74, the P/S ratio is 0.58 and the P/B ratio is finally 1.70. The dividend yield amounts to 1.81 percent and the beta ratio has a value of 0.75.

Polaris Industries (PII) has a market capitalization of $6.03 billion. The company employs 3,900 people, generates revenue of $2.656 billion and has a net income of $227.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $392.22 million. The EBITDA margin is 14.76 percent (the operating margin is 13.17 percent and the net profit margin 8.57 percent).

Financial Analysis: The total debt represents 8.73 percent of the company’s assets and the total debt in relation to the equity amounts to 21.45 percent. Due to the financial situation, a return on equity of 52.25 percent was realized. Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, the company paid $0.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.51, the P/S ratio is 2.27 and the P/B ratio is finally 11.95. The dividend yield amounts to 1.69 percent and the beta ratio has a value of 1.73.

QUALCOMM (QCOM) has a market capitalization of $108.90 billion. The company employs 26,600 people, generates revenue of $19.121 billion and has a net income of $5.283 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.499 billion. The EBITDA margin is 33.99 percent (the operating margin is 29.28 percent and the net profit margin 27.63 percent).

Financial Analysis: QCOM has no long-term debt. Due to the financial situation, a return on equity of 17.64 percent was realized. Twelve trailing months earnings per share reached a value of $3.06. Last fiscal year, the company paid $0.93 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.86, the P/S ratio is 5.70 and the P/B ratio is finally 3.25. The dividend yield amounts to 1.56 percent and the beta ratio has a value of 1.04.

Take a closer look at the full list of 20 Dividend Contenders with the highest buy rating. The average P/E ratio amounts to 21.71 and forward P/E ratio is 16.90. The dividend yield has a value of 2.28 percent. Price to book ratio is 3.89 and price to sales ratio 2.61. The operating margin amounts to 14.87 percent and the beta ratio is 0.96. Stocks from the list have an average debt to equity ratio of 0.55.

Related stock ticker symbols:
WPC, EPD, PAA, NTT, ENB, BHP, CAH, JW-A, NATI, NUS, CVS, ARG, PII, LECO, QCOM, NVO, SEIC, ECL, FDX, EOG

Selected Articles:
· High-Yield Income Investing With Dividend Contenders
· 12 Dividend Contenders Below Book Value
· 12 Best Dividend Contenders With High Growth And Low Debt
· 20 Most Recommended Dividend Champions

(Subscribe to my blog via RSS Feed or E-Mail. Alternatively, you can follow me on Facebook or Twitter.)

Dividend Contenders with highest buy or better rating originally published at "long-term-investments.blogspot.com."


Stocks Discussed: WPC, EPD, PAA, NTT, ENB, BHP, CAH, JW.A, NATI, NUS, CVS, ARG,
Rate this post:

Rating: 2.3/5 (4 votes)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide