GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

3 Cheap Dividend Contenders With Very Low Debt Figures

Today I would like to screen the Dividend Contenders category by cheap stocks (forward P/E below 15) with the lowest debt ratios. For passive investors, it's very important to own low leveraged growth stocks because they can expect further dividend hikes. If you purchase them at reasonable prices, you can increase the possibility for a good return.

Twelve of the 20 cheap Contenders with very low debt to equity ratios have a buy or better rating and four yield over three percent. Many insurer and banks are on the list. The financial sector is very strong.



Here are the cheapest Dividend Contenders from the screen:


RenaissanceRe (RNR)
has a market capitalization of $3.94 billion. The company employs 309 people, generates revenue of $1.405 billion and has a net income of $746.66 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $944.42 million. The EBITDA margin is 67.17 percent (the operating margin is 53.21 percent and the net profit margin 53.11 percent).

Financial Analysis: The total debt represents 4.44 percent of the company’s assets and the total debt in relation to the equity amounts to 10.04 percent. Due to the financial situation, a return on equity of 18.02 percent was realized. Twelve trailing months earnings per share reached a value of $11.36. Last fiscal year, the company paid $1.08 in the form of dividends to shareholders. Forward P/E: 9.46.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.80, the P/S ratio is 2.82 and the P/B ratio is finally 1.31. The dividend yield amounts to 1.26 percent and the beta ratio has a value of 0.40.

Imperial Oil Limited (IMO) has a market capitalization of $37.24 billion. The company employs 5,263 people, generates revenue of $31.188 billion and has a net income of $3.766 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.681 billion. The EBITDA margin is 18.22 percent (the operating margin is 16.01 percent and the net profit margin 12.08 percent).

Financial Analysis: The total debt represents 5.61 percent of the company’s assets and the total debt in relation to the equity amounts to 10.06 percent. Due to the financial situation, a return on equity of 25.36 percent was realized. Twelve trailing months earnings per share reached a value of $4.17. Last fiscal year, the company paid $0.48 in the form of dividends to shareholders. Forward P/E: 9.54.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.53, the P/S ratio is 1.20 and the P/B ratio is finally 2.29. The dividend yield amounts to 1.08 percent and the beta ratio has a value of 0.72.

Axis Capital Holdings (AXS) has a market capitalization of $5.59 billion. The company employs 1,100 people, generates revenue of $3.926 billion and has a net income of $547.24 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.242 billion. The EBITDA margin is 31.65 percent (the operating margin is 14.02 percent and the net profit margin 13.94 percent).

Financial Analysis: The total debt represents 5.28 percent of the company’s assets and the total debt in relation to the equity amounts to 17.22 percent. Due to the financial situation, a return on equity of 9.69 percent was realized. Twelve trailing months earnings per share reached a value of $5.56. Last fiscal year, the company paid $0.97 in the form of dividends to shareholders. Forward P/E: 10.02.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.43, the P/S ratio is 1.43 and the P/B ratio is finally 1.05. The dividend yield amounts to 2.13 percent and the beta ratio has a value of 0.78.

Take a closer look at the full list of cheap Dividend Contenders with very debt. The average P/E ratio amounts to 14.18 and forward P/E ratio is 11.92. The dividend yield has a value of 2.24 percent. Price to book ratio is 1.62 and price to sales ratio 2.10. The operating margin amounts to 28.44 percent and the beta ratio is 0.83. Stocks from the list have an average debt to equity ratio of 0.15.

Related Stock Ticker Symbols:

DCM, MXIM, TSH, BHB, MSFT, THFF, OXY, PRE, EBMT, QCOM, ACE, AXS, MUR, SFG, CVS, HCC, RNR, IMO, FDX, AAN

Selected Articles:

· 16 Dividend Contenders From Abroad

· 19 Dividend Contenders With Real Big Dividend Growth Potential

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

· 12 Safe Dividend Contenders With Low P/E Multiples

*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.Do you like this article? If yes, please support us and hit the button for a Facebook Like, make a tweet or post a comment in the Dividend Yield community! Thank you so much, we really appreciate it.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


Rating: 5.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK