The Safest and Best Yielding Dividend Contenders

Author's Avatar
May 15, 2012
Dividend Contenders are stocks with consecutive dividend increases of more than 10 years but less than 25 years. One hundred fifty-seven stocks with such a great dividend growth history are available for investors, but not all of them are really safe-haven stocks.


I made a little screen within the investment category and searched stocks with a very low beta ratio (below 0.5) and a dividend yield of more than 4 percent. Nineteen stocks remained of which nine are high yields.


Here are my favorite stocks:


Kinder Morgan Energy (KMP, Financial) has a market capitalization of $27.16 billion. The company employs 8,120 people, generates revenues of $8,211.20 million and has a net income of $1,268.40 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,617.60 million. Because of these figures, the EBITDA margin is 31.88 percent (operating margin 20.34 percent and the net profit margin finally 15.45 percent).


Financial Analysis: The total debt representing 53.18 percent of the company’s assets and the total debt in relation to the equity amounts to 170.74 percent. Due to the financial situation, a return on equity of 1.16 percent was realized. Twelve trailing months earnings per share reached a value of $0.53. Last fiscal year, the company paid $4.61 in form of dividends to shareholders. KMP raised dividend distributions over a period of 16 consecutive years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 150.54, P/S ratio is 3.36 and P/B ratio is 3.77. Dividend Yield: 5.91 percent. Beta ratio: 0.36.


PPL Corporation (PPL, Financial) has a market capitalization of $15.88 billion. The company employs 17,722 people, generates revenues of $12,737.00 million and has a net income of $1,510.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,309.00 million. Because of these figures, the EBITDA margin is 33.83 percent (operating margin 24.30 percent and the net profit margin finally 11.86 percent).


Financial Analysis: The total debt representing 43.54 percent of the company’s assets and the total debt in relation to the equity amounts to 171.51 percent. Due to the financial situation, a return on equity of 15.62 percent was realized. Twelve trailing months earnings per share reached a value of $2.82. Last fiscal year, the company paid $1.40 in form of dividends to shareholders. PPL raised dividend distributions over a period of 11 consecutive years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.70, P/S ratio is 1.25 and P/B ratio is 1.47. Dividend Yield: 5.23 percent. Beta ratio: 0.39.


Plains All American Pipeline (PAA, Financial) has a market capitalization of $12.95 billion. The company employs 3,800 people, generates revenues of $34,275.00 million and has a net income of $994.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,530.00 million. Because of these figures, the EBITDA margin is 4.46 percent (operating margin 3.79 percent and the net profit margin finally 2.90 percent).


Financial Analysis: The total debt representing 33.80 percent of the company’s assets and the total debt in relation to the equity amounts to 95.39 percent. Due to the financial situation, a return on equity of 15.47 percent was realized. Twelve trailing months earnings per share reached a value of $5.01. Last fiscal year, the company paid $3.91 in form of dividends to shareholders. PAA raised dividend distributions over a period of 12 consecutive years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.02, P/S ratio is 0.38 and P/B ratio is 2.40. Dividend Yield: 5.16 percent. Beta ratio: 0.49.


The Southern Company (SO) has a market capitalization of $39.48 billion. The company employs 26,377 people, generates revenues of $17,657.00 million and has a net income of $2,268.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,948.00 million. Because of these figures, the EBITDA margin is 33.69 percent (operating margin 23.96 percent and the net profit margin finally 12.84 percent).


Financial Analysis: The total debt representing 35.81 percent of the company’s assets and the total debt in relation to the equity amounts to 113.74 percent. Due to the financial situation, a return on equity of 13.04 percent was realized. Twelve trailing months earnings per share reached a value of $2.48. Last fiscal year, the company paid $1.87 in form of dividends to shareholders. SO raised dividend distributions over a period of 11 consecutive years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.35, P/S ratio is 2.24 and P/B ratio is 2.24. Dividend Yield: 4.30 percent. Beta ratio: 0.28.


Take a closer look at the full table of the safest and best yielding Dividend Contenders. The average P/E ratio amounts to 19.84 and forward P/E ratio is 15.44. The dividend yield has a value of 5.69 percent. Price to book ratio is 2.22 and price to sales ratio is 2.54. The operating margin amounts to 22.08 percent.


Related stock ticker symbols:

VGR, SPH, BPL, NS, TCP, KMP, PBCT, PPL, PAA, MMP, GAS, CIZN, SXL, NWFL, SO, AROW, ATO, WHG, ARTNA


Selected Articles:

· 14 Dividend Contenders With Gaining Earnings Growth Momentum

· 8 Great Dividend Contenders At New Highs

· The 10 Highest Yielding Dividend Contenders

· The Cheapest Dividend Contenders

· 15 Dividend Contenders With Buy Or Better Rating