20 Dividend Challengers with Fastest Growing Dividends

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Apr 26, 2013
Recently I screened Dividend Champs with the fastest rate of dividend growth. McDonald’s was my best-yielding pick. I noticed that the top 20 stocks had a 10-year dividend growth performance of remarkable 10 to 30 percent yearly but for most of them, the performance slowed within the recent years.

It’s not possible for any company to raise dividends at a very high rate over a longer period. It’s also not possible to raise dividend payments with a gaining momentum. Every company that does this must reduce its growth speed over time.

Today, I introduce some of the fastest growing dividend payers that have raised their distributions at least for five consecutive years but less than 10 years. Here, the best results have grown their dividend payments over the recent five years with a rate of 90 to 30 percent. That’s definitely a higher growth figure but as I said, every growth rate will come down.

Below the top results of my screen are 11 stocks with a buy or better rating. Three of them are high-yields.

Here are my favorite stocks:



Rogers Communications (RCI)
has a market capitalization of $25.19 billion. The company employs 24,500 people, generates revenue of $12.175 billion and has a net income of $1.688 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.533 billion. The EBITDA margin is 37.23 percent (the operating margin is 22.15 percent and the net profit margin 13.87 percent).

Financial Analysis: The total debt represents 55.00 percent of the company’s assets and the total debt in relation to the equity amounts to 286.33 percent. Due to the financial situation, a return on equity of 47.19 percent was realized. Twelve trailing months earnings per share reached a value of $3.36. Last fiscal year, the company paid $1.54 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.56, the P/S ratio is 2.08 and the P/B ratio is finally 6.83. The dividend yield amounts to 3.49 percent and the beta ratio has a value of 0.81.

Cummins (CMI) has a market capitalization of $21.29 billion. The company employs 46,000 people, generates revenue of $17.334 billion and has a net income of $1.738 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.239 billion. The EBITDA margin is 12.92 percent (the operating margin is 13.00 percent and the net profit margin 10.03 percent).

Financial Analysis: The total debt represents 6.18 percent of the company’s assets and the total debt in relation to the equity amounts to 11.74 percent. Due to the financial situation, a return on equity of 27.20 percent was realized. Twelve trailing months earnings per share reached a value of $8.67. Last fiscal year, the company paid $1.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.94, the P/S ratio is 1.20 and the P/B ratio is finally 3.16. The dividend yield amounts to 1.82 percent and the beta ratio has a value of 1.89.

Covidien (COV) has a market capitalization of $31.33 billion. The company employs 43,400 people, generates revenue of $11.852 billion and has a net income of $1.902 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.044 billion. The EBITDA margin is 25.68 percent (the operating margin is 20.34 percent and the net profit margin 16.05 percent).

Financial Analysis: The total debt represents 22.64 percent of the company’s assets and the total debt in relation to the equity amounts to 47.70 percent. Due to the financial situation, a return on equity of 18.66 percent was realized. Twelve trailing months earnings per share reached a value of $3.93. Last fiscal year, the company paid $0.94 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.87, the P/S ratio is 2.64 and the P/B ratio is finally 2.96. The dividend yield amounts to 1.57 percent and the beta ratio has a value of 0.88.

Take a closer look at the full list of Dividend Challengers with highest dividend growth rates. The average P/E ratio amounts to 20.63 and forward P/E ratio is 14.70. The dividend yield has a value of 3.16 percent. Price to book ratio is 3.21 and price to sales ratio 3.25. The operating margin amounts to 17.44 percent and the beta ratio is 0.96. Stocks from the list have an average debt to equity ratio of 1.01.

Related stock ticker symbols:

VNR, CMLP, SEP, TGH, TWGP, NVE, CMS, RCI, BR, CAE, AFSI, CMI, ABC, COV, FINL, NEU, KOF, GOLD

Selected Articles:

· 20 Dividend Champions With Highest 10-Year Dividend Growth Rates

· 10 Highest Yielding Dividend Contenders | High-Yield Growth Investing

· 4 Fastest Dividend Growers From The Dow Jones Index

· 100 Of Americas Fastest Growing Stocks That Made Investors Rich

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Dividend Challengers with fastest growing dividend payments originally published at long-term-investments.blogspot.com.