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19 Dividend Aristocrats with the Strongest Expected Earnings Growth

Dividend Aristocrats are stocks with a very long dividend growth history. They raised cash distributions to shareholders over more than 25 years in a row and are selected by the well-known credit rating agency Standard & Poor’s. Out there are 105 stocks with such a long-term dividend growth, but only 54 are named by S&P.

As you might know, past performance does not mean a great future performance. You shouldn’t think that if your company had a 20 percent growth in the past, your future growth will be in the same range.

It’s more important that you make your own research. Sure, it’s very hard to discover future growth rates, especially if you are not familiar with the company and industry and only make desk research.

But there are also some useful tools like analysts’ predictions. I personally look at the demand and supply developments: If there are big entry barriers for new competitors in a market with steady growing consumer demand, there will be a slowing supply growth which will result in rising prices. That’s a great perspective for an investor like me.

However, today I would like to highlight all Dividend Aristocrats with a double-digit earnings forecast for the next five years. Nineteen stocks fulfilled these criteria of which two are yielding over the 3 percent mark; 15 are currently recommended to buy.

Here are my favorite stocks:

Walgreen Company (WAG) has a market capitalization of $39.17 billion. The company employs 171,000 people, generates revenue of $71.633 billion and has a net income of $2.127 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.630 billion. The EBITDA margin is 6.46 percent (the operating margin is 4.84 percent and the net profit margin 2.97 percent).

Financial Analysis: The total debt represents 16.11 percent of the company’s assets and the total debt in relation to the equity amounts to 29.57 percent. Due to the financial situation, a return on equity of 12.86 percent was realized. Twelve trailing months earnings per share reached a value of $2.23. Last fiscal year, the company paid $0.95 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.58, the P/S ratio is 0.55 and the P/B ratio is finally 2.14. The dividend yield amounts to 2.66 percent and the beta ratio has a value of 1.02.

Dover Corporation (DOV) has a market capitalization of $12.77 billion. The company employs 34,000 people, generates revenue of $8.104 billion and has a net income of $833.12 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.622 billion. The EBITDA margin is 20.03 percent (the operating margin is 15.61 percent and the net profit margin 10.28 percent).

Financial Analysis: The total debt represents 26.81 percent of the company’s assets and the total debt in relation to the equity amounts to 56.92 percent. Due to the financial situation, a return on equity of 16.92 percent was realized. Twelve trailing months earnings per share reached a value of $4.47. Last fiscal year, the company paid $1.33 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.94, the P/S ratio is 1.56 and the P/B ratio is finally 2.58. The dividend yield amounts to 1.98 percent and the beta ratio has a value of 1.38.

Family Dollar Stores (FDO) has a market capitalization of $6.50 billion. The company employs 33,000 people, generates revenue of $9.331 billion and has a net income of $422.24 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $892.60 million. The EBITDA margin is 9.57 percent (the operating margin is 7.37 percent and the net profit margin 4.53 percent).

Financial Analysis: The total debt represents 16.23 percent of the company’s assets and the total debt in relation to the equity amounts to 42.19 percent. Due to the financial situation, a return on equity of 35.41 percent was realized. Twelve trailing months earnings per share reached a value of $3.59. Last fiscal year, the company paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.63, the P/S ratio is 0.70 and the P/B ratio is finally 5.03. The dividend yield amounts to 1.49 percent and the beta ratio has a value of 0.18.

Take a closer look at the full list of Dividend Aristocrats with strongest growth. The average P/E ratio amounts to 19.60 and forward P/E ratio is 15.0. The dividend yield has a value of 2.05 percent. Price to book ratio is 3.84 and price to sales ratio 1.94. The operating margin amounts to 13.18 percent and the beta ratio is 0.96. Stocks from the list have an average debt to equity ratio of 0.57.

Related stock ticker symbols:

ABBV, LEG, WAG, CAH, VFC, TGT, MHP, BF-B, DOV, TROW, PNR, LOW, ABT, CTAS, FDO, GWW, ECL, SHW, BEN

Selected Articles:

· My Best Dividend Aristocrat Growth Picks For 2013

· High Yielding S&P 500 Dividend Aristocrats List

· The 20 Best Performing Dividend Aristocrats

· The 10 Best And Cheapest S&P 500 Dividend Aristocrats

· 12 Solid Financed Dividend Aristocrats

The best growing Dividend Aristocrats originally published at long-term-investments.blogspot.com.

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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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