12 Most Powerful Dividend Stocks

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May 24, 2012
Dividend investors are looking for stocks with great dividend payments. One criterion is the history of consecutive rising dividends. Others are fundamentals like margins, debt ratios or even growth rates. I like to discover those dividend stocks with the highest fire power in terms of dividend payments. First, the stock should have a consecutive dividend growth of at least 25 years (Dividend Champions). Second, the payout ratio should below 30 percent and the debt to equity ratio under 0.3. Stocks with such ratios have enough space to raise dividends when earnings are getting weak.


Twelve companies fulfilled these criteria of which nine have a current buy or better rating.


Here are my favorite stocks:


AFLAC (AFL, Financial)[/b] has a market capitalization of $18.63 billion. The company employs 8,562 people, generates revenues of $22,171.00 million and has a net income of $1,964.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,761.00 million. Because of these figures, the EBITDA margin is 30.49 percent (operating margin 13.50 percent and the net profit margin finally 8.86 percent).


Financial Analysis: The total debt representing 2.81 percent of the company’s assets and the total debt in relation to the equity amounts to 24.32 percent. Due to the financial situation, a return on equity of 15.99 percent was realized. Twelve trailing months earnings per share reached a value of $5.03. Last fiscal year, the company paid $1.23 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.92, P/S ratio 0.85 and P/B ratio 1.38. Dividend Yield: 3.29 percent. The beta ratio is 1.83.


Walgreen Company (WAG, Financial) has a market capitalization of $27 billion. The company employs 176,000 people, generates revenues of $72,184.00 million and has a net income of $2,714.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,393.00 million. Because of these figures, the EBITDA margin is 7.47 percent (operating margin 6.05 percent and the net profit margin finally 3.76 percent).


Financial Analysis: The total debt representing 8.77 percent of the company’s assets and the total debt in relation to the equity amounts to 16.23 percent. Due to the financial situation, a return on equity of 18.56 percent was realized. Twelve trailing months earnings per share reached a value of $2.93. Last fiscal year, the company paid $0.75 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.68, P/S ratio 0.37 and P/B ratio 1.87. Dividend Yield: 2.88 percent. The beta ratio is 0.99.


Exxon Mobil (XOM, Financial) has a market capitalization of $383.63 billion. The company employs 82,100 people, generates revenues of $486,429.00 million and has a net income of $42,206.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $89,087.00 million. Because of these figures, the EBITDA margin is 18.31 percent (operating margin 15.06 percent and the net profit margin finally 8.68 percent).


Financial Analysis: The total debt representing 5.15 percent of the company’s assets and the total debt in relation to the equity amounts to 11.03 percent. Due to the financial situation, a return on equity of 27.26 percent was realized. Twelve trailing months earnings per share reached a value of $8.28. Last fiscal year, the company paid $1.85 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.91, P/S ratio 0.79 and P/B ratio 2.51. Dividend Yield: 2.78 percent. The beta ratio is 0.49.


Take a closer look at the full table of the most powerful Dividend Champions. The average P/E ratio amounts to 14.41 and forward P/E ratio is 13.03. The dividend yield has a value of 1.96 percent. Price to book ratio is 2.81 and price to sales ratio is 1.57. The operating margin amounts to 17.02 percent and the beta ratio is 0.98.


Related stock ticker symbols:

CVX, AFL, WAG, XOM, CB, RLI, GWW, GRC, RAVN, CLC, DCI, HP


Selected Articles:

· 10% Yielding Dividend Stocks With Strongest Expected Earnings Growth

· Stocks With More Than 10% Dividend Yield And Buy Rating

· The Cheapest High-Yield Stocks Within The S&P 500

· The Cheapest Stocks Within The Dow Jones