10 Super-Cheap Stocks with Fastest Dividend Growth in December

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Dec 20, 2011
Sometimes it's all about dividends and dividend growth. The higher the growth rate, the better the valuation of the stock. Not often enough, what matters is the possibility to beat the expectations of the market. That’s a fact we cannot deliver here because we are not clairvoyants. The good thing about stocks with dividend growth is that the company is on track. The management sees good prospects and wants to give back money to shareholders.


However, I screened stocks by fastest dividend growth within the past month. In total, there are 53 stocks that raised dividends compared to the previous declaration, of which 28 have a double-digit growth rate. In addition, I observed only stocks with a forward P/E ratio of less than 10 and a market capitalization of more than $2 billion. Here are the results sorted by dividend yield:


1. Dynex Capital (DX, Financial) hasa market capitalization of $377.16 million. The company employs 15 people, generates revenues of $48.78 million and has a net income of $29.47million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.52 million. Because of these figures, the EBITDA margin is 50.27 percent (operating margin 56.20 percent and the net profit margin finally 60.42 percent).


The total debt representing 81.31 percent of the company’s assets and the total debt in relation to the equity amounts to 458.78 percent. Due to the financial situation, the return on equity amounts to 12.60 percent. Finally, earnings per share amounts to $1.08 of which $0.98 were paid in form of dividends to shareholders last fiscal. The dividend was raised by 3.7 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 8.64, forward P/E ratio 6.92, Price/Sales 7.72 and Price/Book ratio 0.97. Dividend Yield: 12.02 percent. The beta ratio is 0.45.




2. Homeowners Choice (HCII, Financial) hasa market capitalization of $49.39 million. The company employs 93 people, generates revenues of $68.62 million and has a net income of $5.42 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16.07 million. Because of these figures, the EBITDA margin is23.42 percent (operating margin 12.51 percent and the net profit margin finally 7.90 percent).


The company has no long-term debt. Due to the financial situation, the return on equity amounts to 11.79 percent. Finally, earnings per share amounts to $0.98 of which $0.10were paid in form of dividends to shareholders last fiscal. The dividend was raised by 25.0 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 8.18, forward P/E ratio 5.40, Price/Sales 0.72 and Price/Book ratio 1.06. Dividend Yield: 6.29 percent.


3. DDi Corp. (DDIC, Financial) hasa market capitalization of $177.68 million. The company employs 1,676 people, generates revenues of $267.78 million and has a net income of $20.74 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32.74 million. Because of these figures, the EBITDA margin is12.23 percent (operating margin 8.75 percent and the net profit margin finally 7.74 percent).


The total debt representing 8.19 percent of the company’s assets and the total debt in relation to the equity amounts to 12.92 percent. Due to the financial situation, the return on equity amounts to 26.26 percent. Finally, earnings per share amounts to $0.93 of which $0.22 were paid in form of dividends to shareholders last fiscal. The dividend was raised by 20.0 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 9.40, forward P/E ratio 8.65, Price/Sales 0.65 and Price/Book ratio 1.96. Dividend Yield: 4.65 percent. The beta ratio is 1.15.


4. Pfizer (PFE, Financial) hasa market capitalization of $162.50 billion. The company employs110,600 people, generates revenues of $67,809.00 million and has a net income of $8,298.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19,306.00 million. Because of these figures, the EBITDA margin is 28.47 percent (operating margin 13.89 percent and the net profit margin finally 12.24 percent).


The total debt representing 22.58 percent of the company’s assets and the total debt in relation to the equity amounts to 50.14 percent. Due to the financial situation, the return on equity amounts to 9.30 percent. Finally, earnings per share amounts to $1.27 of which $0.72 were paid in form of dividends to shareholders last fiscal. The dividend was raised by 10.0 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 16.64, forward P/E ratio 9.11, Price/Sales 2.36 and Price/Book ratio 1.90. Dividend Yield: 4.22 percent. The beta ratio is 0.72.


5. Horace Mann Educators (HMN, Financial) hasa market capitalization of $525.88 million. The company employs 284 people, generates revenues of $974.71 million and has a net income of $80.86 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $353.15 million. Because of these figures, the EBITDA margin is 36.23 percent (operating margin 11.42 percent and the net profit margin finally 8.30 percent).


The total debt representing 3.39 percent of the company’s assets and the total debt in relation to the equity amounts to 27.01 percent. Due to the financial situation, the return on equity amounts to 10.11 percent. Finally, earnings per share amounts to $1.25 of which $0.35 were paid in form of dividends to shareholders last fiscal. The dividend was raised by 18.2 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 10.53, forward P/E ratio 7.32, Price/Sales 0.54 and Price/Book ratio 0.59. Dividend Yield: 3.97 percent. The beta ratio is 1.33.




6. Ameriprise Financial (AMP, Financial) hasa market capitalization of $10.49 billion. The company employs 10,472 people, generates revenues of $10,046.00 million and has a net income of $1,260.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,097.00 million. Because of these figures, the EBITDA margin is 20.87 percent (operating margin 15.87 percent and the net profit margin finally 12.54 percent).


The total debt representing 6.29 percent of the company’s assets and the total debt in relation to the equity amounts to 76.91 percent. Due to the financial situation, the return on equity amounts to 10.97 percent. Finally, earnings per share amounts to $4.76 of which $0.71 were paid in form of dividends to shareholders last fiscal. The dividend was raised by 21.7 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 9.74, forward P/E ratio 7.74, Price/Sales 1.01 and Price/Book ratio 1.03. Dividend Yield: 2.49 percent. The beta ratio is 1.95.




7. Aetna (AET, Financial) hasa market capitalization of $14.55 billion. The company employs34,000 people, generates revenues of $34,246.00 million and has a net income of $1,766.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,932.90 million. Because of these figures, the EBITDA margin is 8.56 percent (operating margin 7.72 percent and the net profit margin finally 5.16 percent).


The total debt representing 11.61 percent of the company’s assets and the total debt in relation to the equity amounts to 44.31 percent. Due to the financial situation, the return on equity amounts to 18.22 percent. Finally, earnings per share amounts to $4.72 of which $0.04 were paid in form of dividends to shareholders last fiscal. The dividend was raised by 16.7 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 8.51, forward P/E ratio 7.98, Price/Sales 0.42 and Price/Book ratio 1.53. Dividend Yield: 1.78 percent. The beta ratio is 1.25.




8. Corn Products Intl. (CPO, Financial) hasa market capitalization of $3.75 billion. The company employs 10,700 people, generates revenues of $4,367.00 million and has a net income of $176.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $484.00 million. Because of these figures, the EBITDA margin is11.08 percent (operating margin 7.67 percent and the net profit margin finally 4.03 percent).


The total debt representing 34.88 percent of the company’s assets and the total debt in relation to the equity amounts to 89.52 percent. Due to the financial situation, the return on equity amounts to 9.21 percent. Finally, earnings per share amounts to $4.77 of which $0.56 were paid in form of dividends to shareholders last fiscal. The dividend was raised by 25.0 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 10.38, forward P/E ratio 9.70, Price/Sales 0.84 and Price/Book ratio 1.87. Dividend Yield: 1.65 percent. The beta ratio is 1.30.




9. Franklin Resources (BEN, Financial) hasa market capitalization of $20.17 billion. The company employs 8,453 people, generates revenues of $7,140.04 million and has a net income of $1,820.78 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,742.23 million. Because of these figures, the EBITDA margin is 38.41 percent (operating margin 37.25 percent and the net profit margin finally 25.50 percent).


The total debt representing 15.74 percent of the company’s assets and the total debt in relation to the equity amounts to 25.44 percent. Due to the financial situation, the return on equity amounts to 23.57 percent. Finally, earnings per share amounts to $8.62 of which $1.00 were paid in form of dividends to shareholders last fiscal. The dividend was raised by 8.0 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 10.76, forward P/E ratio 9.50, Price/Sales 2.88 and Price/Book ratio 2.41. Dividend Yield: 1.14 percent. The beta ratio is 1.46.




10. Discover Financial Services (DFS, Financial) hasa market capitalization of $12.47 billion. The company employs 10,300 people, generates revenues of $6,146.22 million and has a net income of $764.79 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,701.34 million. Because of these figures, the EBITDA margin is 27.68 percent (operating margin 19.06 percent and the net profit margin finally 11.49 percent).


The total debt representing 29.13 percent of the company’s assets and the total debt in relation to the equity amounts to 274.22 percent. Due to the financial situation, the return on equity amounts to 9.73 percent. Finally, earnings per share amounts to $4.06 of which $0.08 were paid in form of dividends to shareholders last fiscal. The dividend was raised by 66.7 percent compared to the previous dividend payment.


Here are the price ratios of the company: The P/E ratio is 5.81, forward P/E ratio 7.32, Price/Sales 1.97 and Price/Book ratio 2.01. Dividend Yield: 1.01 percent. The beta ratio is 1.44.