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20 Dividend Champions with Highest 10-Year Dividend Growth Rates
Posted by: Dividend (IP Logged)
Date: April 24, 2013 10:03AM

Dividend Champions with fastest 10 year dividend growth originally published at "long-term-investments.blogspot.com". Dividend Champions are popular because of their long payment history. They increased dividend payments each year over a period of more than 25 years without an interruption.

In my view it’s for every high-quality stock possible to manage a 50 year dividend growth. The only requirement is a stable growing business with a high degree of self-financing. So, the only big difference between the longest dividend growers is the rate of the dividend growth. There are fast growing stocks and slow hikers. Which should you buy?

If you want to make money with dividend growth stocks, you need fast growth but it makes only sense to purchase them for an acceptable price. What return will you make when you pay a price that is 100 times of the expected earnings?

Today, I like to screen the investment category “Dividend Champions” by stocks with the highest rate of dividend growth over the recent 10 years. Linked is a full list of the top 20 champs with a double-digit dividend growth. Fourteen of the results have a current buy or better rating.

Here are my favorite stocks:

McDonald's (MCD) has a market capitalization of $100.04 billion. The company employs 440,000 people, generates revenue of $27.567 billion and has a net income of $5.464 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.965 billion. The EBITDA margin is 36.15 percent (the operating margin is 31.21 percent and the net profit margin 19.82 percent).

Financial Analysis: The total debt represents 38.52 percent of the company’s assets and the total debt in relation to the equity amounts to 89.14 percent. Due to the financial situation, a return on equity of 36.82 percent was realized. Twelve trailing months earnings per share reached a value of $5.39. Last fiscal year, the company paid $2.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.52, the P/S ratio is 3.63 and the P/B ratio is finally 6.54. The dividend yield amounts to 3.09 percent and the beta ratio has a value of 0.39.

PepsiCo (PEP) has a market capitalization of $130.05 billion. The company employs 278,000 people, generates revenue of $65.492 billion and has a net income of $6.214 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11.920 billion. The EBITDA margin is 18.20 percent (the operating margin is 13.91 percent and the net profit margin 9.49 percent).

Financial Analysis: The total debt represents 38.00 percent of the company’s assets and the total debt in relation to the equity amounts to 127.20 percent. Due to the financial situation, a return on equity of 28.62 percent was realized. Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, the company paid $2.13 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.56, the P/S ratio is 1.99 and the P/B ratio is finally 5.79. The dividend yield amounts to 2.56 percent and the beta ratio has a value of 0.50.

Wal-Mart Stores (WMT) has a market capitalization of $262.10 billion. The company employs 2,200,000 people, generates revenue of $469.162 billion and has a net income of $17.756 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36.302 billion. The EBITDA margin is 7.74 percent (the operating margin is 5.93 percent and the net profit margin 3.78 percent).

Financial Analysis: The total debt represents 26.65 percent of the company’s assets and the total debt in relation to the equity amounts to 70.91 percent. Due to the financial situation, a return on equity of 23.02 percent was realized. Twelve trailing months earnings per share reached a value of $5.02. Last fiscal year, the company paid $1.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.75, the P/S ratio is 0.56 and the P/B ratio is finally 3.43. The dividend yield amounts to 2.38 percent and the beta ratio has a value of 0.34.

Medtronic (MDT) has a market capitalization of $47.23 billion. The company employs 45,000 people, generates revenue of $16.184 billion and has a net income of $3.415 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.127 billion. The EBITDA margin is 31.68 percent (the operating margin is 25.61 percent and the net profit margin 21.10 percent).

Financial Analysis: The total debt represents 32.14 percent of the company’s assets and the total debt in relation to the equity amounts to 62.13 percent. Due to the financial situation, a return on equity of 20.65 percent was realized. Twelve trailing months earnings per share reached a value of $3.28. Last fiscal year, the company paid $0.97 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.22, the P/S ratio is 2.92 and the P/B ratio is finally 2.82. The dividend yield amounts to 2.23 percent and the beta ratio has a value of 0.93.

Take a closer look at the full list of the fastest growing Dividend Champions. The average P/E ratio amounts to 19.19 and forward P/E ratio is 14.91. The dividend yield has a value of 2.09 percent. Price to book ratio is 3.84 and price to sales ratio 2.23. The operating margin amounts to 18.01 percent and the beta ratio is 1.0. Stocks from the list have an average debt to equity ratio of 0.52.

Related stock ticker symbols:
NUE, MCD, WEYS, AFL, PEP, WMT, MSA, MDT, WAG, TGT, BDX, EV, TROW, RLI, LOW, RAVN, GWW, DCI, SIAL, BEN

Selected Articles:
· 7 Dividend Aristocrats With The Highest Payout Potential
· 12 Cheap Dividend Champions With Double-Digit Earnings Growth
· Cheap Dividend Champions | 20 Stocks With Highest Growth At Low Valuation
· 20 Safest Early Stage Dividend Growth Stocks

*If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free
e-mail list. Alternatively, you can follow me on Facebook or Twitter.


Stocks Discussed: NUE, MCD, WEYS, AFL, PEP, WMT, MSA, MDT, WAG, TGT, BDX, EV, TR,
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Rating: 4.5/5 (2 votes)





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