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11 Services Dividend Stocks with Gaining Earnings Momentum

Service stocks are characterized by cyclic business models, low margins and partially high growth due to the business cycle. The whole sector has a total market capitalization of USD46.3 trillion. The average company has a P/E ratio of 20.45 as well as a Dividend yield of 1.83%.

In order to find some opportunities, I screened the sector by dividend stocks with an earnings growth of more than ten% over the past five years. In order to catch only those stocks with a gaining earnings momentum, I observed only those stocks with quarter-over-quarter sales and earnings per share growth of more than 20%. Exactly 11 companies fulfilled these criteria of which one is a high yield; 9 are recommended to buy.

Here are my favorite stocks:

Comcast Corporation (CMCSA) has a market capitalization of $78.4 billion. The company employs 126,000 people, generates revenues of $55,842 million and has a net income of $5,157.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,357.00 million. Because of these figures, the EBITDA margin is 32.87% (operating margin 19.20% and the net profit margin finally 9.23%).

The total debt representing 24.91% of the company’s assets and the total debt in relation to the equity amounts to 83.15%. Due to the financial situation, a return on equity of 9.08% was realized. Twelve trailing months earnings per share reached $1.50. Last fiscal year, the company paid $0.45 in the form of dividends to shareholders. Quarter over quarter, sales are up 54.74% and earnings 29.15%.

Here are the price ratios of the company: The P/E ratio is 19.30, P/S ratio 1.38 and P/B ratio 1.64. Dividend yield: 2.27%. The beta ratio is 1.05.

Tractor Supply Company (TSCO) has a market capitalization of $6.58 billion. The company employs 8,700 people, generates revenues of $4,232.74 million and has a net income of $222.74 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $433.05 million. Because of these figures, the EBITDA margin is 10.23% (operating margin 8.33% and the net profit margin finally 5.26%).

The total debt representing 0.08% of the company’s assets and the total debt in relation to the equity amounts to 0.13%. Due to the financial situation, a return on equity of 22.94% was realized. Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, the company paid $0.43 in form of dividends to shareholders. Quarter over quarter, sales are up 20.08% and earnings 44.04%.

Here are the price ratios of the company: The P/E ratio is 30.58, P/S ratio 1.54 and P/B ratio 6.42. Dividend yield: 0.53%. The beta ratio is 0.82.

Mercadolibre (MELI) has a market capitalization of $4.21 billion. The company employs 1,633 people, generates revenues of $298.93 million and has a net income of $76.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $107.04 million. Because of these figures, the EBITDA margin is 35.81% (operating margin 33.38% and the net profit margin finally 25.69%).

The total debt representing 0.08% of the company’s assets and the total debt in relation to the equity amounts to 0.13%. Due to the financial situation, a return on equity of 39.28% was realized. Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, the company paid $0.35 in form of dividends to shareholders. Quarter over quarter, sales are up 38.75% and earnings 35.56%.

Here are the price ratios of the company: The P/E ratio is 54.79, P/S ratio 13.77 and P/B ratio 18.79. Dividend yield: 0.47%. The beta ratio is 1.90.

Take a closer look at the full table of services dividend stocks with accelerated earnings growth. The average price to earnings ratio (P/E ratio) amounts to 25.64 and forward P/E ratio is 15.72. The Dividend yield has a value of 1.64%. Price to book ratio is 5.54 and price to sales ratio 3.62. The operating margin amounts to 24.97%. Sales increased 35.25% compared to the figures from the same quarter last year (23.73% five-year average) and the earnings per share grew 51.68% quarter over quarter (44.11% five-year average).

Related stock ticker symbols:

TGH, CHRM, NRCI, CMCSA, FMCN, G, CBD, TSCO, MELI, WINA, WAB

Selected Articles:

Services Stocks With Strongest Earnings Forecasts And Good Dividends

Best Services Stock Picks For 2012

11 Low Volatility Stocks From Services Sector With Goods Dividends

The Best Dividend Stocks From Service Sector

11 Service Dividend Stocks With Buy Or Better Rating

About the author:

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

Visit Dividend's Website


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