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15 Cheap High Beta Industrial Dividend Stocks
Posted by: Dividend (IP Logged)
Date: August 12, 2013 10:19AM

I love to look for cheap stocks, but bargains in the market are really hard to find, especially because of the hundreds of thousands of metrics you can use to identify an undervalued stock.

A major criterion which is often used by many investors is the price to earnings ratio. It tells you how many years you need to get your investment back in corporate earnings. The lower the ratio, the cheaper your investment is. A P/E of 10 also means that the earnings yield is at 10 percent.

This month, I’ve created an article serial about high beta stocks. Those stocks are more closely correlated than the overall market and tend to outperform the broad S&P 500 in bullish times. They also tend to lose performance when the markets are going down.

Today I would like to screen high beta dividend stocks from the industrial sector with a cheap forward P/E ratio. Only 15 stocks from the sector fulfilled these criteria and 11 of them are currently recommended to buy.

Here are the highest yielding results:

ABB (ABB)
has a market capitalization of $51.60 billion. The company employs 146,100 people, generates revenue of $39.33 billion and has a net income of $2.808 billion. ABB’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.719 billion. The EBITDA margin is 14.54 percent (the operating margin is 10.32 percent and the net profit margin 7.14 percent).

Financial Analysis: The total debt represents 20.52 percent of ABB’s assets and the total debt in relation to the equity amounts to 59.57 percent. Due to the financial situation, a return on equity of 16.52 percent was realized by ABB. Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, ABB paid $0.74 in the form of dividends to shareholders. Forward P/E: 13.68.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.44, the P/S ratio is 1.33 and the P/B ratio is finally 3.05. The dividend yield amounts to 3.20 percent and the beta ratio has a value of 1.45.

General Electric (GE) has a market capitalization of $246.96 billion. The company employs 305,000 people, generates revenue of $147.359 billion and has a net income of $14.902 billion. General Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29.339 billion. The EBITDA margin is 19.91 percent (the operating margin is 11.81 percent and the net profit margin 10.11 percent).

Financial Analysis: The total debt represents 60.42 percent of General Electric’s assets and the total debt in relation to the equity amounts to 336.56 percent. Due to the financial situation, a return on equity of 12.24 percent was realized by General Electric. Twelve trailing months earnings per share reached a value of $1.40. Last fiscal year, General Electric paid $0.70 in the form of dividends to shareholders. Forward P/E: 13.35.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.28, the P/S ratio is 1.68 and the P/B ratio is finally 2.05. The dividend yield amounts to 3.13 percent and the beta ratio has a value of 1.68.

Caterpillar (CAT) has a market capitalization of $54.73 billion. The company employs 122,402 people, generates revenue of $65.875 billion and has a net income of $5.708 billion. Caterpillar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.167 billion. The EBITDA margin is 18.47 percent (the operating margin is 13.01 percent and the net profit margin 8.66 percent).

Financial Analysis: The total debt represents 44.92 percent of Caterpillar’s assets and the total debt in relation to the equity amounts to 228.97 percent. Due to the financial situation, a return on equity of 37.36 percent was realized by Caterpillar. Twelve trailing months earnings per share reached a value of $6.34. Last fiscal year, Caterpillar paid $2.02 in the form of dividends to shareholders. Forward P/E: 11.50.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.33, the P/S ratio is 0.83 and the P/B ratio is finally 3.16. The dividend yield amounts to 2.84 percent and the beta ratio has a value of 1.90.

Take a closer look at the full list of cheap industrial high beta dividend stocks. The average P/E ratio amounts to 17.39 and forward P/E ratio is 13.05. The dividend yield has a value of 2.26 percent. Price to book ratio is 3.30 and price to sales ratio 1.22. The operating margin amounts to 11.05 percent and the beta ratio is 1.55. Stocks from the list have an average debt to equity ratio of 1.06.

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Related Stock Ticker Symbols:
ABB, GE, CAT, SI, GD, TS, NOC, DE, SWK, CMI, BA, PH, DOV, IR, FLR

Selected Articles:
· Industrial Dividend Stocks With Highest Performance
· 20 Industrials With Highest Bets On A Falling Stock Price
· Industrial Dividend Stocks With Cheapest Forward P/E
· 8 Industrial Dividend Stocks, Safer Than The Overall Market

*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: ABB, GE, CAT, SI, GD, TS, NOC, DE, SWK, CMI, BA, PH, DOV, IR, FL,
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