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3 of the Cheapest Dividend Aristocrats

Everybody talks about Dividend Aristocrats when discussing the best dividend growth stocks. Those companies have raised their dividend payments over a period of more than 25 years in a row and are selected by the credit rating agency Standard & Poor’s. The index has only 54 constituents. Normally, Dividend Aristocrats are highly valuated because of their high-quality and low-risk business models.

If you pay a big premium on your asset, you will not get a good return in the end. It’s very simple. All you need to do is to scout for attractive bargains at the capital market.

Today I would like to screen the Dividend Aristocrats Index by the cheapest companies in terms of forward P/E. Only 19 stocks have a current forward P/E ratio below 15. Some of them have bigger amounts of debt and others are slow growing. However, nearly 70 percent of the results have a current buy or better rating by brokerage firms.

All members of the Dividend Aristocrats Index generated a positive year-to-date performance. It’s also a sign for the quality of the index. In average, they have a stock price performance of 16.03 percent, 1.02 percentage points better than the broader S&P 500.

Here are the three cheapest results in terms of forward P/E:



AFLAC Incorporated (AFL)
has a market capitalization of $27.05 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. Forward Price-To-Earnings: 8.91.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.17, the P/S ratio is 1.07 and the P/B ratio is finally 1.70. The dividend yield amounts to 2.41 percent and the beta ratio has a value of 1.91.

Chevron Corporation (CVX) has a market capitalization of $235.08 billion. The company employs 62,000 people, generates revenue of $241.909 billion and has a net income of $26.336 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.975 billion. The EBITDA margin is 24.79 percent (the operating margin is 19.15 percent and the net profit margin 10.89 percent).

Financial Analysis: The total debt represents 5.23 percent of the company’s assets and the total debt in relation to the equity amounts to 8.93 percent. Due to the financial situation, a return on equity of 20.30 percent was realized. Twelve trailing months earnings per share reached a value of $13.23. Last fiscal year, the company paid $3.51 in the form of dividends to shareholders. Forward Price-To-Earnings: 9.74.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.16, the P/S ratio is 0.97 and the P/B ratio is finally 1.73. The dividend yield amounts to 3.30 percent and the beta ratio has a value of 0.80.

Exxon Mobil (XOM) has a market capitalization of $410.18 billion. The company employs 76,900 people, generates revenue of $467.285 billion and has a net income of $47.681 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $79.931 billion. The EBITDA margin is 17.11 percent (the operating margin is 13.71 percent and the net profit margin 10.20 percent).

Financial Analysis: The total debt represents 3.47 percent of the company’s assets and the total debt in relation to the equity amounts to 6.98 percent. Due to the financial situation, a return on equity of 28.03 percent was realized. Twelve trailing months earnings per share reached a value of $9.81. Last fiscal year, the company paid $2.18 in the form of dividends to shareholders. Forward Price-To-Earnings: 11.24.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.41, the P/S ratio is 0.88 and the P/B ratio is finally 2.50. The dividend yield amounts to 2.73 percent and the beta ratio has a value of 0.50.

Take a closer look at the full list of the cheapest Dividend Aristocrats. The average P/E ratio amounts to 17.52 and forward P/E ratio is 12.62. The dividend yield has a value of 2.47 percent. Price to book ratio is 3.59 and price to sales ratio 1.56. The operating margin amounts to 15.64 percent and the beta ratio is 0.93. Stocks from the list have an average debt to equity ratio of 0.74.

Related stock ticker symbols:

T, ABBV, NUE, CVX, EMR, XOM, CAH, SWK, WMT, WAG, TGT, AFL, ADM, MDT, CB, DOV, PNR, BEN, BCR

Selected Articles:

· 20 Of The Safest Dividend Aristocrats

· 20 Most Profitable Dividend Aristocrats

· 7 Dividend Aristocrats With The Highest Payout Potential

· 20 Most Recommended Dividend Aristocrats Index Stocks

*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 Aristocrats with low forward Price-to-earnings 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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