My 3 Favorite Stocks with Recent Dividend Hikes

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Jun 02, 2013
Last week was a weak one because only 14 companies announced they would raise their dividends. Three of them have a high yield and 10 a buy or better recommendation. In total they grew dividends by an average ratio of 16.57 percent.

Growing dividends are important because they show which companies are confident to manage future growth without additional capital. For you as investor, you get a higher passive income.

The biggest names on the best dividend growers list are National Grid, Seadrill and American Eagle Outfitters.

Here are my favorite dividend growth stocks:

Seadrill (SDRL) has a market capitalization of $19.02 billion. The company employs 8,700 people, generates revenue of $4.478 billion and has a net income of $1.205 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.406 billion. The EBITDA margin is 53.73 percent (the operating margin is 40.00 percent and the net profit margin 26.91 percent).

Financial Analysis: The total debt represents 60.24 percent of the company’s assets and the total debt in relation to the equity amounts to 214.92 percent. Due to the financial situation, a return on equity of 19.30 percent was realized. Twelve trailing months earnings per share reached a value of $2.33. Last fiscal year, the company paid $2.54 in the form of dividends to shareholders. SDRL annouced a 4.8 percent dividend hike last week.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.40, the P/S ratio is 4.33 and the P/B ratio is finally 3.46. The dividend yield amounts to 8.68 percent and the beta ratio has a value of 1.99.

National Grid (NGG) has a market capitalization of $43.34 billion. The company employs 25,645 people, generates revenue of $21.822 billion and has a net income of $3.489 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.773 billion. The EBITDA margin is 35.62 percent (the operating margin is 26.14 percent and the net profit margin 15.99 percent).

Financial Analysis: The total debt represents 51.36 percent of the company’s assets and the total debt in relation to the equity amounts to 274.69 percent. Due to the financial situation, a return on equity of 23.58 percent was realized. Twelve trailing months earnings per share reached a value of $4.74. Last fiscal year, the company paid $3.03 in the form of dividends to shareholders. NGG annouced a 83.2 percent dividend hike last week.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.55, the P/S ratio is 2.01 and the P/B ratio is finally 2.79. The dividend yield amounts to 5.30 percent and the beta ratio has a value of 0.60.

Hill-Rom Holdings (HRC) has a market capitalization of $2.16 billion. The company employs 6,950 people, generates revenue of $1.634 billion and has a net income of $120.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $324.30 million. The EBITDA margin is 19.84 percent (the operating margin is 10.33 percent and the net profit margin 7.39 percent).

Financial Analysis: The total debt represents 21.67 percent of the company’s assets and the total debt in relation to the equity amounts to 43.40 percent. Due to the financial situation, a return on equity of 15.54 percent was realized. Twelve trailing months earnings per share reached a value of $1.76. Last fiscal year, the company paid $0.49 in the form of dividends to shareholders. HRC annouced a 10.0 percent dividend hike last week.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.49, the P/S ratio is 1.32 and the P/B ratio is finally 2.70. The dividend yield amounts to 1.52 percent and the beta ratio has a value of 1.46.

Take a closer look at the full table of stocks with recent dividend hikes. The average dividend growth amounts to 16.57 percent and the average dividend yield amounts to 3.53 percent. Stocks from the sheet are valuated with a P/E ratio of 14.59. The average P/S ratio is 2.01 and P/B 2.46.

Related Stock Ticker:

AEO, GYC, CM, CRY, DAKT, DSW, EIHI, GZT, GLNG, HRC, NGG, NP, ROYT, SDRL, TSH

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Stocks with dividend hikes from last week originally published at long-term-investments.blogspot.com.