The Best S&P 500 Dividend Stocks With Single Digit P/E Ratios

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Jul 04, 2012
S&P 500 Stocks With Best Dividends By Dividend Yield - Stock, Capital, Investment. The S&P 500 index is a popular used tool by investors. Institutional player like big insurance companies or pension funds allocate their portfolio weighting on indices like the Dow Jones Index and Standard & Poor’s 500. The S&P 500 is a free-float capitalization-weighted index published since 1957 by Standard & Poor's, a division of McGraw-Hill Companies. In order to get the best return, investors need to invest in the cheapest stocks of the index.

I screened the index with its 500 companies by the best yielding stocks with single digit P/E ratios. The index has 44 stocks with a very low P/E ratio and the highest yield amounts to 10.27 percent, paid by Pitney Bowes (PBI, Financial). In order to focus on the best yielding stocks, I decided to select only those stocks with a minimum dividend yield of three percent. Exactly fourteen companies remained of which ten have a buy or better recommendation.

Here are my favorite stocks:

ConocoPhillips (COP) has a market capitalization of $71.33 billion. The company employs 29,700 people, generates revenue of $251,226.00 million and has a net income of $12,502.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31,891.00 million. The EBITDA margin is 12.69 percent (operating margin 9.16 percent and net profit margin 4.98 percent). Financial Analysis: The total debt represents 14.76 percent of the company’s assets and the total debt in relation to the equity amounts to 34.69 percent.

Due to the financial situation, a return on equity of 18.59 percent was realized. Twelve trailing months earnings per share reached a value of $9.15. Last fiscal year, the company paid $2.64 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.16, P/S ratio 0.28 and P/B ratio 1.10. Dividend Yield: 4.74 percent. The beta ratio is 1.14.

Staples (SPLS) has a market capitalization of $9.08 billion. The company employs 51,542 people, generates revenue of $25,022.19 million and has a net income of $983.83 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,110.49 million. The EBITDA margin is 8.43 percent (operating margin 6.51 percent and net profit margin 3.93 percent).

Financial Analysis: The total debt represents 15.18 percent of the company’s assets and the total debt in relation to the equity amounts to 29.05 percent. Due to the financial situation, a return on equity of 14.11 percent was realized. Twelve trailing months earnings per share reached a value of $1.40. Last fiscal year, the company paid $0.40 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.42, P/S ratio 0.36 and P/B ratio 1.29. Dividend Yield: 3.38 percent. The beta ratio is 0.92.

General Dynamics (GD) has a market capitalization of $23.85 billion. The company employs 89,800 people, generates revenue of $32,677.00 million and has a net income of $2,552.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,418.00 million. The EBITDA margin is 13.52 percent (operating margin 11.71 percent and net profit margin 7.81 percent).

Financial Analysis: The total debt represents 11.27 percent of the company’s assets and the total debt in relation to the equity amounts to 29.70 percent. Due to the financial situation, a return on equity of 19.23 percent was realized. Twelve trailing months earnings per share reached a value of $6.87. Last fiscal year, the company paid $1.88 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.63, P/S ratio 0.73 and P/B ratio 1.78. Dividend Yield: 3.09 percent. The beta ratio is 1.25.

Take a closer look at the full table of the best yielding S&P 500 dividend stocks with single P/E ratios. The average P/E ratio amounts to 7.97 and forward P/E ratio is 7.57. The dividend yield has a value of 4.37 percent. Price to book ratio is 3.59 and price to sales ratio 0.85. The operating margin amounts to 16.55 percent.

Related stock ticker symbols:

PBI, GCI, PPL, CLF, COP, LXK, FCX, NOC, CVX, JPM, SPLS, GME, GD, AFL

Additional Yield Lists:

- Yields of the Dow Jones

- NASDAQ 100

- Yields Dividend Aristocrats