Corporations with a small amount of debt have better flexibility to grow faster than other stocks with a similar size in the same industry. Corporate debt is a major source to boost growth without issuing new shares.
I’m a dividend growth investor and I look for stocks that pay in 10 years a dividend that is twice as big as today. That’s the reason why I always look beside the growth possibilities also at the dividend payout and debt figures. A company with little debt, high cash and low dividend payouts has much to offer for current shareholders.
Today I would like to screen the industrial sector by stocks with low debt figures and dividend payouts. I selected only those stocks with a 20 percent dividend payout and a debt to equity ratio of less than 0.2.
Only thirteen stocks fulfilled these two criteria of which ten have a current buy or better ratio. The results are dominated by lower capitalized stocks. Only five have a market cap over a billion dollar.
Here are the biggest stocks:
Babcock & Wilcox (BWC) has a market capitalization of $3.68 billion. The company employs 14,000 people, generates revenue of $3.291 billion and has a net income of $217.56 million. Babcock & Wilcox’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $354.21 million. The EBITDA margin is 10.76 percent (the operating margin is 10.53 percent and the net profit margin 6.61 percent).
Financial Analysis: The total debt represents 0.16 percent of Babcock & Wilcox’s assets and the total debt in relation to the equity amounts to 0.46 percent. Due to the financial situation, a return on equity of 25.13 percent was realized by Babcock & Wilcox. Twelve trailing months earnings per share reached a value of $2.04. Last fiscal year, Babcock & Wilcox paid $0.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.27, the P/S ratio is 1.12 and the P/B ratio is finally 3.89. The dividend yield amounts to 0.96 percent and the beta is not calculable.
EnerSys (ENS) has a market capitalization of $3.03 billion. The company employs 9,000 people, generates revenue of $2.277 billion and has a net income of $164.96 million. EnerSys’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $307.53 million. The EBITDA margin is 13.50 percent (the operating margin is 11.05 percent and the net profit margin 7.24 percent).
Financial Analysis: The total debt represents 8.98 percent of EnerSys’s assets and the total debt in relation to the equity amounts to 15.26 percent. Due to the financial situation, a return on equity of 15.13 percent was realized by EnerSys. Twelve trailing months earnings per share reached a value of $3.31. Last fiscal year, EnerSys paid $0.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.24, the P/S ratio is 1.31 and the P/B ratio is finally 2.56. The dividend yield amounts to 0.80 percent and the beta ratio has a value of 1.58.
Emcor Group (EME) has a market capitalization of $2.65 billion. The company employs 26,000 people, generates revenue of $6.346 billion and has a net income of $148.89 million. Emcor Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $281.32 million. The EBITDA margin is 4.43 percent (the operating margin is 3.94 percent and the net profit margin 2.35 percent).
Financial Analysis: The total debt represents 5.02 percent of Emcor Group’s assets and the total debt in relation to the equity amounts to 11.58 percent. Due to the financial situation, a return on equity of 11.36 percent was realized by Emcor Group. Twelve trailing months earnings per share reached a value of $2.02. Last fiscal year, Emcor Group paid $0.26 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.52, the P/S ratio is 0.41 and the P/B ratio is finally 1.92. The dividend yield amounts to 0.62 percent and the beta ratio has a value of 1.58.
Take a closer look at the full list of industrial stocks with potential to hike dividends. The average P/E ratio amounts to 20.49 and forward P/E ratio is 15.81. The dividend yield has a value of 0.76 percent. Price to book ratio is 3.12 and price to sales ratio 1.58. The operating margin amounts to 10.55 percent and the beta ratio is 1.41. Stocks from the list have an average debt to equity ratio of 0.06.
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Related Stock Ticker Symbols:
KAI, CECE, PLPC, BWC, CFI, ENS, LNN, EME, ALG, SXI, AAON, GHM, CIR
Selected Articles:
· Industrial Dividend Stocks With Highest Performance
· Dividend Champions With Very Low Payout Ratios
· 13 Large Cap Financials With High Potential To Boost Dividends
· 15 Cheap High Beta Industrial Dividend Stocks
*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.
I’m a dividend growth investor and I look for stocks that pay in 10 years a dividend that is twice as big as today. That’s the reason why I always look beside the growth possibilities also at the dividend payout and debt figures. A company with little debt, high cash and low dividend payouts has much to offer for current shareholders.
Today I would like to screen the industrial sector by stocks with low debt figures and dividend payouts. I selected only those stocks with a 20 percent dividend payout and a debt to equity ratio of less than 0.2.
Only thirteen stocks fulfilled these two criteria of which ten have a current buy or better ratio. The results are dominated by lower capitalized stocks. Only five have a market cap over a billion dollar.
Here are the biggest stocks:
Babcock & Wilcox (BWC) has a market capitalization of $3.68 billion. The company employs 14,000 people, generates revenue of $3.291 billion and has a net income of $217.56 million. Babcock & Wilcox’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $354.21 million. The EBITDA margin is 10.76 percent (the operating margin is 10.53 percent and the net profit margin 6.61 percent).
Financial Analysis: The total debt represents 0.16 percent of Babcock & Wilcox’s assets and the total debt in relation to the equity amounts to 0.46 percent. Due to the financial situation, a return on equity of 25.13 percent was realized by Babcock & Wilcox. Twelve trailing months earnings per share reached a value of $2.04. Last fiscal year, Babcock & Wilcox paid $0.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.27, the P/S ratio is 1.12 and the P/B ratio is finally 3.89. The dividend yield amounts to 0.96 percent and the beta is not calculable.
EnerSys (ENS) has a market capitalization of $3.03 billion. The company employs 9,000 people, generates revenue of $2.277 billion and has a net income of $164.96 million. EnerSys’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $307.53 million. The EBITDA margin is 13.50 percent (the operating margin is 11.05 percent and the net profit margin 7.24 percent).
Financial Analysis: The total debt represents 8.98 percent of EnerSys’s assets and the total debt in relation to the equity amounts to 15.26 percent. Due to the financial situation, a return on equity of 15.13 percent was realized by EnerSys. Twelve trailing months earnings per share reached a value of $3.31. Last fiscal year, EnerSys paid $0.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.24, the P/S ratio is 1.31 and the P/B ratio is finally 2.56. The dividend yield amounts to 0.80 percent and the beta ratio has a value of 1.58.
Emcor Group (EME) has a market capitalization of $2.65 billion. The company employs 26,000 people, generates revenue of $6.346 billion and has a net income of $148.89 million. Emcor Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $281.32 million. The EBITDA margin is 4.43 percent (the operating margin is 3.94 percent and the net profit margin 2.35 percent).
Financial Analysis: The total debt represents 5.02 percent of Emcor Group’s assets and the total debt in relation to the equity amounts to 11.58 percent. Due to the financial situation, a return on equity of 11.36 percent was realized by Emcor Group. Twelve trailing months earnings per share reached a value of $2.02. Last fiscal year, Emcor Group paid $0.26 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.52, the P/S ratio is 0.41 and the P/B ratio is finally 1.92. The dividend yield amounts to 0.62 percent and the beta ratio has a value of 1.58.
Take a closer look at the full list of industrial stocks with potential to hike dividends. The average P/E ratio amounts to 20.49 and forward P/E ratio is 15.81. The dividend yield has a value of 0.76 percent. Price to book ratio is 3.12 and price to sales ratio 1.58. The operating margin amounts to 10.55 percent and the beta ratio is 1.41. Stocks from the list have an average debt to equity ratio of 0.06.
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.
Related Stock Ticker Symbols:
KAI, CECE, PLPC, BWC, CFI, ENS, LNN, EME, ALG, SXI, AAON, GHM, CIR
Selected Articles:
· Industrial Dividend Stocks With Highest Performance
· Dividend Champions With Very Low Payout Ratios
· 13 Large Cap Financials With High Potential To Boost Dividends
· 15 Cheap High Beta Industrial Dividend Stocks
*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.
