13 Not Expensive Stocks with Dividend Yields Over 3% as Well as a Consistent Business

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Sep 10, 2013
It’s important not to overpay for a stock. The first rule you need to follow is to pay acceptable prices for a growing business that is somehow calculable. I talk about a business model with nearly stable sales that grow over the long run.

On my blog, I often present such companies with a low-volatility business and good yields. Today I would like to use the GEighteen stocks with a better than 4-Star gurufocus rating fulfilled the above mentioned criteria. Three of the results have a high yield and four are currently recommended to buy or even better.

Here are the biggest stocks:



Novartis (NVS)
has a market capitalization of $185.42 billion. The company employs 127,724 people, generates revenue of $57.561 billion and has a net income of $9.618 billion. Novartis’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16.848 billion. The EBITDA margin is 29.27 percent (the operating margin is 20.00 percent and the net profit margin 16.71 percent).

Financial Analysis: The total debt represents 15.88 percent of Novartis’s assets and the total debt in relation to the equity amounts to 28.55 percent. Due to the financial situation, a return on equity of 14.09 percent was realized by Novartis. Twelve trailing months earnings per share reached a value of $3.81. Last fiscal year, Novartis paid $2.30 in the form of dividends to shareholders. Forward P/E: 14.13.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.87, the P/S ratio is 3.54 and the P/B ratio is finally 2.66. The dividend yield amounts to 3.20 percent and the beta ratio has a value of 0.62.

China Petroleum & Chemical (SNP) has a market capitalization of $73.79 billion. The company employs 376,201 people, generates revenue of $455.221 billion and has a net income of $10.914 billion. China Petroleum & Chemical’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $27.817 billion. The EBITDA margin is 6.11 percent (the operating margin is 3.54 percent and the net profit margin 2.40 percent).

Financial Analysis: The total debt represents 21.95 percent of China Petroleum & Chemical’s assets and the total debt in relation to the equity amounts to 54.43 percent. Due to the financial situation, a return on equity of 12.99 percent was realized by China Petroleum & Chemical. Twelve trailing months earnings per share reached a value of $8.89. Last fiscal year, China Petroleum & Chemical paid $3.77 in the form of dividends to shareholders. Forward P/E: 6.84.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.03, the P/S ratio is 0.19 and the P/B ratio is finally 0.86. The dividend yield amounts to 5.08 percent and the beta ratio has a value of 0.83.

The Bank of Nova Scotia (BNS) has a market capitalization of $69.53 billion. The company employs 83,416 people, generates revenue of $16.491 billion and has a net income of $6.216 billion. The Bank of Nova Scotia’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.198 billion. The EBITDA margin is 55.78 percent (the operating margin is 40.84 percent and the net profit margin 32.82 percent).

Financial Analysis: The total debt represents 10.25 percent of The Bank of Nova Scotia’s assets and the total debt in relation to the equity amounts to 172.70 percent. Due to the financial situation, a return on equity of 19.55 percent was realized by The Bank of Nova Scotia. Twelve trailing months earnings per share reached a value of $4.84. Last fiscal year, The Bank of Nova Scotia paid $2.11 in the form of dividends to shareholders. Forward P/E: 10.85.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.94, the P/S ratio is 3.67 and the P/B ratio is finally 2.02. The dividend yield amounts to 4.11 percent and the beta ratio has a value of 1.28.

Rogers Communications (RCI) has a market capitalization of $22.42 billion. The company employs 28,745 people, generates revenue of $12.486 billion and has a net income of $1.732 billion. Rogers Communications’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.757 billion. The EBITDA margin is 38.10 percent (the operating margin is 22.15 percent and the net profit margin 13.87 percent).

Financial Analysis: The total debt represents 55.00 percent of Rogers Communications’s assets and the total debt in relation to the equity amounts to 286.33 percent. Due to the financial situation, a return on equity of 47.19 percent was realized by Rogers Communications. Twelve trailing months earnings per share reached a value of $3.63. Last fiscal year, Rogers Communications paid $1.58 in the form of dividends to shareholders. Forward P/E: 11.96.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.99, the P/S ratio is 1.79 and the P/B ratio is finally 5.88. The dividend yield amounts to 4.04 percent and the beta ratio has a value of 0.28.

Take a closer look at the full list of cheap stocks with a predictable business. The average P/E ratio amounts to 12.66 and forward P/E ratio is 11.54. The dividend yield has a value of 4.55 percent. Price to book ratio is 2.65 and price to sales ratio 1.97. The operating margin amounts to 25.77 percent and the beta ratio is 0.76. Stocks from the list have an average debt to equity ratio of 0.98.

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Related Stock Ticker Symbols:

STRA, NRCIB, ARLP, TEO, BVN, DRI, IAG, SJR, BNS, RCI, BCH, TMP, CA, NVS, HAS, SNP, HNP, CHMG

Selected Articles:

· Fifteen Dividend Stocks and Shares That Buffett/Munger Might Choose

· 8 Predictable Dividend Stocks At Historical Book-Value Lows

· 18 Undervalued Stocks With Good Dividends And A Predictable Business

· Dogs of the Dow Jones Index As Of August 2013

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