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Best Recommended High-Yield Dividend Challengers

Dividend Challengers are stocks with uninterrupted dividend growth of at least five years but less than ten years. 192 stocks, listed on AMEX, NASDAQ or NYSE, fulfilled these dividend growth criteria. I screened the investment category by stocks with a high yield (over five percent) and a buy or better recommendation. In order to reduce the results and to eliminate stocks with a lower capitalization, I observed only stocks with a capitalization over USD2 billion. Ten companies remained. The results are dominated by stocks from the basic material sector (80 percent). The oil and gas pipeline industry presented 60 percent of the results.

Here are my favorite stocks:

1. Verizon Communications (VZ)
has a market capitalization of $111.92 billion. The company employs 193,900 people, generates revenues of $110,875.00 million and has a net income of $10,198.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29,376.00 million. Because of these figures, the EBITDA margin is 26.49 percent (operating margin 11.62 percent and the net profit margin finally 9.20 percent).

The total debt representing 23.93 percent of the company’s assets and the total debt in relation to the equity amounts to 153.33 percent. Due to the financial situation, a return on equity of 6.45 percent was realized. Twelve trailing months earnings per share reached a value of $0.85. Last fiscal year, the company paid $1.98 in form of dividends to shareholders. VZ raised dividends for 7 consecutive years.

Here are the price ratios of the company: The P/E ratio is 46.61, P/S ratio 1.01 and P/B ratio 3.11. Dividend Yield: 5.07 percent. The beta ratio is 0.55.

2. Williams Partners L.P. (WPZ) has a market capitalization of $18.05 billion. The company generates revenues of $6,729.00 million and has a net income of $1,378.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,250.00 million. Because of these figures, the EBITDA margin is 33.44 percent (operating margin 24.40 percent and the net profit margin finally 20.48 percent).

The total debt representing 50.33 percent of the company’s assets and the total debt in relation to the equity amounts to 138.43 percent. Due to the financial situation, a return on equity of 20.77 percent was realized. Twelve trailing months earnings per share reached a value of $3.69. Last fiscal year, the company paid $2.96 in form of dividends to shareholders. WPZ raised dividends for 8 consecutive years.

Here are the price ratios of the company: The P/E ratio is 16.05, P/S ratio 2.66 and P/B ratio 3.33. Dividend Yield: 5.08 percent. The beta ratio is 1.11.

3. El Paso Pipeline Partners (EPB) has a market capitalization of $8.27 billion. The company generates revenues of $1,425.00 million and has a net income of $551.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $952.00 million. Because of these figures, the EBITDA margin is 66.81 percent (operating margin 55.02 percent and the net profit margin finally 38.67 percent).

The total debt representing 62.41 percent of the company’s assets and the total debt in relation to the equity amounts to 202.79 percent. Due to the financial situation, a return on equity of 11.49 percent was realized. Twelve trailing months earnings per share reached a value of $2.04. Last fiscal year, the company paid $1.93 in form of dividends to shareholders. EPB raised dividends for 5 consecutive years.

Here are the price ratios of the company: The P/E ratio is 17.38, P/S ratio 5.27 and P/B ratio 2.10. Dividend Yield: 5.59 percent. The beta ratio is 0.21.

Take a closer look at the full table of best recommended Dividend Challengers with high yields. The average price to earnings ratio (P/E ratio) amounts to 29.41 and forward P/E ratio is 17.83. The dividend yield has a value of 6.01 percent. Price to book ratio is 3.64 and price to sales ratio 2.77. The operating margin amounts to 21.70 percent. Finally, the return on equity has a fantastic margin of 50.22 percent and the return on investment follows with a value of 8.77 percent.

Related stock ticker symbols:

NRP, EEP, TGP, ETE, NGLS, EPB, GEL, WPZ, AHGP, VZ

Selected Articles:

· Best Yielding Low Beta Dividend Challengers

· 14 Cheap Dividend Challengers

· 14 Dividend Challengers For Less Than Book Value

· 12 Dividend Challengers With Low PEG Ratios

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


Rating: 3.0/5 (8 votes)

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