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My 3 Favorite Financial Dividend Stocks with Really Cheap Price Ratios

Dividends are great, not only because you get cash in your pockets. It’s also a symbol for the ability of a company to share its profits with the shareholders of the company.

Dividends are good but they are better when the company is cheaply priced. This month, I started a screen serial of the cheapest stocks from several major sectors. Today, I observe financial stocks with a large market capitalization (over USD10 billion) and a positive dividend yield.

The top 20 results are valuated between 6.9 and 9.6 of expected earnings. Despite the financial recovery and the ongoing crises, nearly all of the results have an expected five year earnings growth close to the 10 percent mark.

Two of the results have a high yield and 18 are currently recommended to buy or even better.

Here are my favorite stocks:

AFLAC (AFL)has a market capitalization of $25.56 billion. The company employs 8,673 people, generates revenue of $25.364 billion and has a net income of $2.866 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.747 billion. The EBITDA margin is 22.66 percent (the operating margin is 16.96 percent and the net profit margin 11.30 percent).

Financial Analysis: The total debt represents 3.32 percent of the company’s assets and the total debt in relation to the equity amounts to 27.24 percent. Due to the financial situation, a return on equity of 19.82 percent was realized. Twelve trailing months earnings per share reached a value of $6.33. Last fiscal year, the company paid $1.34 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.66, the P/S ratio is 1.03 and the P/B ratio is finally 1.64. The dividend yield amounts to 2.50 percent and the beta ratio has a value of 1.87.

Prudential Financial (PRU) has a market capitalization of $30.53 billion. The company employs 48,498 people, generates revenue of $84.815 billion and has a net income of $472.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $978.00 million. The EBITDA margin is 1.15 percent (the operating margin is 0.80 percent and the net profit margin 0.56 percent).

Financial Analysis: The total debt represents 4.06 percent of the company’s assets and the total debt in relation to the equity amounts to 74.63 percent. Due to the financial situation, a return on equity of 1.23 percent was realized. Twelve trailing months earnings per share reached a value of $1.41. Last fiscal year, the company paid $1.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 46.35, the P/S ratio is 0.36 and the P/B ratio is finally 0.80. The dividend yield amounts to 2.43 percent and the beta ratio has a value of 2.40.

Allstate (ALL) has a market capitalization of $23.17 billion. The company employs 38,000 people, generates revenue of $33.315 billion and has a net income of $2.306 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.793 billion. The EBITDA margin is 23.39 percent (the operating margin is 9.87 percent and the net profit margin 6.92 percent).

Financial Analysis: The total debt represents 4.77 percent of the company’s assets and the total debt in relation to the equity amounts to 29.43 percent. Due to the financial situation, a return on equity of 11.86 percent was realized. Twelve trailing months earnings per share reached a value of $4.62. Last fiscal year, the company paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.71, the P/S ratio is 0.70 and the P/B ratio is finally 1.16. The dividend yield amounts to 2.01 percent and the beta ratio has a value of 1.49.

Take a closer look at the full list of the 20 cheapest financial stocks. The average P/E ratio amounts to 20.03 and forward P/E ratio is 8.40. The dividend yield has a value of 2.84 percent. Price to book ratio is 1.11 and price to sales ratio 2.12. The operating margin amounts to 16.10 percent and the beta ratio is 1.88. Stocks from the list have an average debt to equity ratio of 4.69.

Related stock ticker symbols:

AEG, BCS, MET, DB, SHG, PRU, AGNC, BX, JPM, HIG, AFL, CM, COF, ITUB, CS, C, BBVA, MS, DFS, ALL

Selected Articles:

· 17 Safest Stocks From The Financial Sector

· Financial Dividend Stocks: The Best Yielding Growth Opportunities

· 20 Highly Recommended Financial Dividend Shares | Stock Buy List

· My Best Financial Stock Picks For 2013

*If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternatively, you can follow me onFacebookor Twitter.Dividend stocks from the financial sector with very low forward P/E ratios originally published at long-term-investments.blogspot.com.

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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