3 Top Yielding Dividend Aristocrats with Low Dividend Payouts

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Oct 09, 2013
Dividend Aristocrats are stocks with a very long dividend growth history. Those stocks raised their dividends over more than 25 consecutive years and being selected by the credit agency Standard & Poor’s. The index covers 54 companies from the national stock exchanges.

Dividend Aristocrats are nice because they have a huge trust base for long-term orientated investors but a past performance also did not mean that the future performance would be the same. Some Dividend Aristocrats are full of debt and they pay dividends at a very high level.

I started an article serial this month about stocks with low debt and dividend payout ratios. I believe that those companies are much better positioned from the financial perspective to boost future dividends. In addition, they have much more capabilities to grow at a faster pace.

Today I would like to introduce you some of the Dividend Aristocrats with the lowest dividend payout ratios on the market. Half of the results have also acceptable or low debt ratios.

Only thirteen stocks have a dividend payout ratio of less than 30 percent of which seven are currently recommended to buy.

Here are the top yielding results:



Chevron (CVX)
has a market capitalization of $225.53 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.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.46, the P/S ratio is 0.93 and the P/B ratio is finally 1.66. The dividend yield amounts to 3.43 percent and the beta ratio has a value of 0.88.

Exxon Mobil (XOM) has a market capitalization of $376.38 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.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.77, the P/S ratio is 0.81 and the P/B ratio is finally 2.32. The dividend yield amounts to 2.95 percent and the beta ratio has a value of 0.58.

AFLAC (AFL) has a market capitalization of $28.91 billion. The company employs 8,673 people, generates revenue of $25.364 billion and has a net income of $2.866 billion. AFLAC’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 AFLAC’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 by AFLAC. Twelve trailing months earnings per share reached a value of $7.20. Last fiscal year, AFLAC paid $1.34 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.63, the P/S ratio is 1.14 and the P/B ratio is finally 1.82. The dividend yield amounts to 2.25 percent and the beta ratio has a value of 2.17.

Take a closer look at the full list of Dividend Aristocrats with low payout ratios. The average P/E ratio amounts to 14.83 and forward P/E ratio is 17.27. The dividend yield has a value of 1.79 percent. Price to book ratio is 4.53 and price to sales ratio 2.0. The operating margin amounts to 20.1 percent and the beta ratio is 1.01. Stocks from the list have an average debt to equity ratio of 0.46.

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Related Stock Ticker Symbols:

CVX, XOM, AFL, BDX, CB, DOV, MHFI, PPG, FDO, CTAS, SHW, SIAL, BEN

Selected Articles:

· A Dozen Reasonably Priced Dividend Aristocrats With Buy Or Better Recommendation

· 16 Dividend Aristocrats With High Beta Ratios

· 10 Cheap Income Growth Stocks From The S&P High-Yield Dividend Aristocrats Index

· Dogs of the Dividend Aristocrats Index

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