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11 Cheap High Beta Consumer Goods Dividend Stocks

You might know that I really love stocks from the consumer goods sector. They offer a very good risk profile for income-seeking investors with a desire for future dividend growth. The problem is that they are also highly valuated. This was one of the reasons why I needed to purchase more and more stocks from other sectors like industrials and health care stocks.

I’m not worried about this because with every single stock purchase of other industries and sectors, my diversification rises. The second negative item in terms of consumer goods stocks is that most of them are low-beta stocks. If you would like to make money in a strong upside market, you lose performance with low-beta stocks.

This is the reason why I discovered some high-beta stocks with attractive valuation figures this month in an article serial.

Back to the current screen about high beta consumer dividend stocks. I observed this time large capitalized consumer dividend stocks with a low forward P/E and a beta ratio above one.

My screen produced only 11 results with yields between 0.71 percent and 2.58 percent. Nearly all of them (10 stocks) have a current buy or better rating by brokerage firms.

Here are the highest yielding results:

Koninklijke Philips Electronics (PHG)
has a market capitalization of $29.40 billion. The company employs 115,281 people, generates revenue of $32.856 billion and has a net income of $630.94 million. Koninklijke Philips Electronics’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,967.23 million. The EBITDA margin is 12.07 percent (the operating margin is 4.16 percent and the net profit margin 1.92 percent).

Financial Analysis: The total debt represents 15.59 percent of Koninklijke Philips Electronics’s assets and the total debt in relation to the equity amounts to 40.70 percent. Due to the financial situation, a return on equity of 2.19 percent was realized by Koninklijke Philips Electronics. Twelve trailing months earnings per share reached a value of $0.42. Last fiscal year, Koninklijke Philips Electronics paid $0.99 in the form of dividends to shareholders. Forward P/E: 13.26.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 76.84, the P/S ratio is 0.96 and the P/B ratio is finally 2.00. The dividend yield amounts to 3.02 percent and the beta ratio has a value of 1.47.

Coach (COH) has a market capitalization of $14.96 billion. The company employs 18,000 people, generates revenue of $5.075 billion and has a net income of $1.034 billion. Coach’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.524 billion. The EBITDA margin is 30.04 percent (the operating margin is 30.04 percent and the net profit margin 20.38 percent).

Financial Analysis: The total debt represents 0.03 percent of Coach’s assets and the total debt in relation to the equity amounts to 0.04 percent. Due to the financial situation, a return on equity of 47.00 percent was realized by Coach. Twelve trailing months earnings per share reached a value of $3.62. Last fiscal year, Coach paid $1.125 in the form of dividends to shareholders. Forward P/E: 12.27.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.51, the P/S ratio is 2.95 and the P/B ratio is finally 6.30. The dividend yield amounts to 2.54 percent and the beta ratio has a value of 1.47.

International Paper (IP) has a market capitalization of $21.11 billion. The company employs 70,000 people, generates revenue of $27.833 billion and has a net income of $693.00 million. International Paper’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.377 billion. The EBITDA margin is 12.13 percent (the operating margin is 3.68 percent and the net profit margin 2.49 percent).

Financial Analysis: The total debt represents 31.54 percent of International Paper’s assets and the total debt in relation to the equity amounts to 160.85 percent. Due to the financial situation, a return on equity of 11.57 percent was realized by International Paper. Twelve trailing months earnings per share reached a value of $2.19. Last fiscal year, International Paper paid $1.09 in the form of dividends to shareholders. Forward P/E: 10.50.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.60, the P/S ratio is 0.78 and the P/B ratio is finally 3.41. The dividend yield amounts to 2.45 percent and the beta ratio has a value of 2.30.

Take a closer look at the full list of cheap high beta consumer goods dividend stocks. The average P/E ratio amounts to 26.27 and forward P/E ratio is 11.57. The dividend yield has a value of 1.91 percent. Price to book ratio is 3.01 and price to sales ratio 0.97. The operating margin amounts to 9.56 percent and the beta ratio is 1.80. Stocks from the list have an average debt to equity ratio of 1.35.

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Related Stock Ticker Symbols:

PHG, COH, IP, F, CCE, WHR, JCI, BG, HOG, SNE, TTM

Selected Articles:

· Consumer Goods Stocks With Highest YTD Performance And Cheap Price Ratios

· Consumer Dividend Stocks That Are Highly Shorted

· 20 Cheapest Consumer Dividend Stocks

· The Safest Consumer Dividend Stocks | 20 Exclusive Shares

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About the author:

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

Visit Dividend's Website


Rating: 2.8/5 (6 votes)

Comments

jasongill
Jasongill - 7 months ago
Very good reading. Aside from Coach and International Paper, I also like Procter & Gamble as a cheap consumer goods dividend stock. First, it is an S&P 500 dividend aristocrat with a commitment of raising dividends every year. Here is additional information on PG.

Procter & Gamble paid its first dividend on January 19th, 1970 and has increased it since each year in a row. The last dividend increase occurred on April 24th, 2013 when the Board of Directors announced a 7% increase from 56 cents to 60 cents/share. The company's largest competitors include Johnson and Johnson, Unilever, Colgate-Palmolive, Henkel, Church & Dwight, etc. Procter and Gamble is a part of the prestigious S&P 500 Dividend Aristocrats Index; a group of companies that have paid and increased their dividends each year for the last 25 years.

Source: http://www.2topdividendpayingstocks.com/procter-gamble-dividend-analysis.html

Over the last 10 years, this dividend growth stock has delivered an annualized rate of return of 7% to its shareholders. Over the last 10 years, Procter & Gamble has increased its Diluted Earnings per Common Share (EPS) from $1.70 in 2003 to $3.94 in 2012. Analysts estimate Procter and Gamble will earn $4.04/share in 2013 and $4.30/share in 2014.

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