Twenty Dividend Income Growth Stocks with Best Cash Distribution Increasing Rates over the Short-Run

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Sep 05, 2013
A growing dividend is normally a good sign for investors. The corporate shows two characteristics to their owners: strength and power of a healthy and growing business.

The rate of dividend growth is in this context a great measure to judge the success of a business. A company with a 20 percent dividend growth rate must have a stronger growing underlying business than a corporate with a 3 percent growing dividend. The future looks rosy and the management team is more optimistic to share profits of the company at a high level.

Firms that hike dividends faster than inflation, deliver accelerated growth or maintain growth at a high level, can pass returns to shareholders.

Today I would like to present you the 20 fastest growing dividends from the Dividend Champions list over the short-run. One hundred and five companies are part of the list which is a compilation of stocks with over 25 years of consecutive dividend growth.

And the winners are: services and industrials. No other sectors have more constituents on the list. It was the best place to be in the past to gain a higher dividend. This is not equal to return or profits.

Here are the top yielding results in detail:

American States Water (AWR)
has a market capitalization of $1.01 billion. The company employs 728 people, generates revenue of $466.91 million and has a net income of $54.15 million. American States Water’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $152.41 million. The EBITDA margin is 32.64 percent (the operating margin is 23.79 percent and the net profit margin 11.60 percent).

Financial Analysis: The total debt represents 26.21 percent of American States Water’s assets and the total debt in relation to the equity amounts to 73.87 percent. Due to the financial situation, a return on equity of 12.46 percent was realized by American States Water. Twelve trailing months earnings per share reached a value of $1.52. Last fiscal year, American States Water paid $0.64 in the form of dividends to shareholders. AWR's dividends grew yearly by an average value of 7.9 percent over the past 3 years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.21, the P/S ratio is 2.16 and the P/B ratio is finally 2.21. The dividend yield amounts to 6.20 percent and the beta ratio has a value of 0.46.

Chevron (CVX) has a market capitalization of $233.50 billion. The company employs 62,000 people, generates revenue of $241.909 billion and has a net income of $26.336 billion. Chevron’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 Chevron’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 by Chevron. Twelve trailing months earnings per share reached a value of $12.34. Last fiscal year, Chevron paid $3.51 in the form of dividends to shareholders. CVX's dividends grew yearly by an average value of 9.7 percent over the past 3 years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.79, the P/S ratio is 0.97 and the P/B ratio is finally 1.72. The dividend yield amounts to 3.31 percent and the beta ratio has a value of 0.82.

McDonald's (MCD) has a market capitalization of $95.13 billion. The company employs 440,000 people, generates revenue of $27.567 billion and has a net income of $5.464 billion. McDonald's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.865 billion. The EBITDA margin is 35.79 percent (the operating margin is 31.21 percent and the net profit margin 19.82 percent).

Financial Analysis: The total debt represents 38.52 percent of McDonald's assets and the total debt in relation to the equity amounts to 89.14 percent. Due to the financial situation, a return on equity of 36.82 percent was realized by McDonald's. Twelve trailing months earnings per share reached a value of $5.46. Last fiscal year, McDonald's paid $2.87 in the form of dividends to shareholders. MCD's dividends grew yearly by an average value of 11.90 percent over the past 3 years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.44, the P/S ratio is 3.45 and the P/B ratio is finally 6.24. The dividend yield amounts to 3.24 percent and the beta ratio has a value of 0.38.

Exxon Mobil (XOM) has a market capitalization of $386.32 billion. The company employs 76,900 people, generates revenue of $467.285 billion and has a net income of $47.681 billion. Exxon Mobil’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 Exxon Mobil’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 by Exxon Mobil. Twelve trailing months earnings per share reached a value of $7.94. Last fiscal year, Exxon Mobil paid $2.18 in the form of dividends to shareholders. XOM's dividends grew yearly by an average value of 9.50 percent over the past 3 years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.05, the P/S ratio is 0.83 and the P/B ratio is finally 2.38. The dividend yield amounts to 2.87 percent and the beta ratio has a value of 0.53.

Take a closer look at the full list of Dividend Champions with fastest short-term dividend growth. The average P/E ratio amounts to 18.38 and forward P/E ratio is 15.58. The dividend yield has a value of 2.13 percent. Price to book ratio is 3.55 and price to sales ratio 1.60. The operating margin amounts to 13.84 percent and the beta ratio is 0.95. Stocks from the list have an average debt to equity ratio of 0.45, a relatively low value compared to the other screens on my blog.

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Related Stock Ticker Symbols:

AWR, CVX, MCD, XOM, TGT, WAG, BDX, NC, VFC, PH, DOV, HRL, LOW, RAVN, FDO, DCI, GWW, CTAS, NDSN, CLC

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