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My 5 Favorite Stocks with Recent Dividend Growth
Posted by: Dividend (IP Logged)
Date: July 28, 2013 12:50PM

Dividend growth comes back. Last week, 81 stocks announced a higher dividend payment in the future. Six of them have now a double-digit dividend yield and 38 are low valuated with a forward P/E of less than 15.

It’s good to see that the number of dividend growers has risen within the recent week. It’s a sign that the economy is doing well and companies are more confident about the future.

On average, stocks from the list of the latest dividend growth stocks have increased their dividend payments by 20.73 percent. A value between 5 and 30 is good because your passive income grows faster than the inflation. A too-high dividend growth ratio shows that there is something wrong. If not, they have paid very low dividends in the past and let the dividend jump. The most important thing you need to remember is that you receive dividends that are not paid from the substance of the corporate. It means that dividends should be significantly lower than the earnings or the corporate. Special dividends are all right but they are only one-time items.

Here are my favorite dividend growth stocks:

GlaxoSmithKline (GSK)
has a market capitalization of $126.40 billion. The company employs 99,488 people, generates revenue of $40.648 billion and has a net income of $7.295 billion. GlaxoSmithKline’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14.250 billion. The EBITDA margin is 35.06 percent (the operating margin is 27.97 percent and the net profit margin 17.95 percent).

Financial Analysis: The total debt represents 44.13 percent of GlaxoSmithKline’s assets and the total debt in relation to the equity amounts to 315.01 percent. Due to the financial situation, a return on equity of 65.96 percent was realized by GlaxoSmithKline. Twelve trailing months earnings per share reached a value of $2.46. Last fiscal year, GlaxoSmithKline paid $2.28 in the form of dividends to shareholders. GSK announced to raise dividends by 0.5 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.90, the P/S ratio is 3.09 and the P/B ratio is finally 14.13. The dividend yield amounts to 4.61 percent and the beta ratio has a value of 0.67.

Unilever (UL) has a market capitalization of $115.21 billion. The company employs 172,000 people, generates revenue of $68.147 billion and has a net income of $6.569 billion. Unilever’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.968 billion. The EBITDA margin is 16.10 percent (the operating margin is 13.62 percent and the net profit margin 9.64 percent).

Financial Analysis: The total debt represents 22.14 percent of Unilever’s assets and the total debt in relation to the equity amounts to 67.43 percent. Due to the financial situation, a return on equity of 30.42 percent was realized by Unilever. Twelve trailing months earnings per share reached a value of $2.15. Last fiscal year, Unilever paid $1.29 in the form of dividends to shareholders. UL announced to raise dividends by 1.5 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.87, the P/S ratio is 1.76 and the P/B ratio is finally 5.71. The dividend yield amounts to 3.31 percent and the beta ratio has a value of 0.73.

Norfolk Southern (NSC) has a market capitalization of $23.06 billion. The company employs 30,943 people, generates revenue of $11.040 billion and has a net income of $1.749 billion. Norfolk Southern’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.040 billion. The EBITDA margin is 36.59 percent (the operating margin is 28.24 percent and the net profit margin 15.84 percent).

Financial Analysis: The total debt represents 28.61 percent of Norfolk Southern’s assets and the total debt in relation to the equity amounts to 88.95 percent. Due to the financial situation, a return on equity of 17.69 percent was realized by Norfolk Southern. Twelve trailing months earnings per share reached a value of $5.42. Last fiscal year, Norfolk Southern paid $1.94 in the form of dividends to shareholders. NSC announced to raise dividends by 4.0 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.65, the P/S ratio is 2.09 and the P/B ratio is finally 2.38. The dividend yield amounts to 2.81 percent and the beta ratio has a value of 1.14.

Hershey (HSY) has a market capitalization of $21.12 billion. The company employs 12,100 people, generates revenue of $6.644 billion and has a net income of $660.93 million. Hershey’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.399 billion. The EBITDA margin is 21.07 percent (the operating margin is 16.72 percent and the net profit margin 9.95 percent).

Financial Analysis: The total debt represents 40.10 percent of Hershey’s assets and the total debt in relation to the equity amounts to 183.93 percent. Due to the financial situation, a return on equity of 69.79 percent was realized by Hershey. Twelve trailing months earnings per share reached a value of $3.20. Last fiscal year, Hershey paid $1.56 in the form of dividends to shareholders. HSY announced to raise dividends by 15.5 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.54, the P/S ratio is 3.01 and the P/B ratio is finally 20.39. The dividend yield amounts to 2.05 percent and the beta ratio has a value of 0.20.

McKesson (MCK) has a market capitalization of $28.59 billion. The company employs 43,500 people, generates revenue of $122.455 billion and has a net income of $1.338 billion. McKesson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.899 billion. The EBITDA margin is 2.37 percent (the operating margin is 1.73 percent and the net profit margin 1.09 percent).

Financial Analysis: The total debt represents 14.01 percent of McKesson’s assets and the total debt in relation to the equity amounts to 68.93 percent. Due to the financial situation, a return on equity of 19.25 percent was realized by McKesson. Twelve trailing months earnings per share reached a value of $5.82. Last fiscal year, McKesson paid $0.80 in the form of dividends to shareholders. MCK announced to raise dividends by 20.0 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.47, the P/S ratio is 0.23 and the P/B ratio is finally 4.01. The dividend yield amounts to 0.77 percent and the beta ratio has a value of 0.80.

Take a closer look at the full table of stocks with recent dividend hikes. The average dividend growth amounts to 20.73 percent and the average dividend yield amounts to 4.39 percent. Stocks from the sheet are valuated with a P/E ratio of 21.98. The average P/S ratio is 3.95 and P/B 6.17.

Related Stock Ticker:
ANCX, AHGP, ARLP, ATLS, APL, ARP, BHB, B, BBCN, BKEP, BWA, CLMT, CE, CAKE, CEM, CTBI, CR, CRT, EML, NDRO, ETE, FII, LION, FIBK, GSK, GLP, HIG, HSY, HLSS, HGT, NRGM, TILE, KMT, LGCY, LNN, LRE, MMP, MWE, MMLP, MXIM, MCK, MCRL, MCO, MSI, MPLX, NSLP, NSC, NWBI, OILT, OKE, OKS, PFG, PHM, RYN, RGP, RS, RNF, RSG, RRMS, SJT, SDR, SDT, PER, SOHO, SONA, SEP, SWK, STON, SMLP, SXCP, SXL, TAL, TCP, THRD, TOFC, UN, UL, UBSH, USAC, VLO, WEN, WPZ

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Stocks Discussed: ANCX, AHGP, ARLP, ATLS, APL, ARP, BHB, B, BBCN, BKEP, BWA, CL,
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