14 Dividend Contenders with Gaining Earnings Growth Momentum

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Apr 09, 2012
Dividend Contenders are growth stocks with a huge reliability in terms of dividend payments. They raised distributions over a period of 10-24 consecutive years. One hundred sixty-six companies with such an impressive dividend growth are available for trade on the markets.


In order to find some opportunities, I screened the sector by stocks with an earnings growth of more than ten percent (past five years). In order to catch up only those stocks with a gaining earnings momentum, I observed only those stocks with a quarter-over-quarter sales and earnings-per-share growth of more than fifteen percent. Exactly fourteen companies fulfilled these criteria of which two are high yields; nine are recommended to buy.


Here are my favorite stocks:


1. Nu Skin Enterprises (NUS, Financial) has a market capitalization of $3.59 billion. The company employs 3,420 people, generates revenues of $1,743.99 million and has a net income of $153.33 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $266.54 million. Because of these figures, the EBITDA margin is 15.28 percent (operating margin 13.40 percent and the net profit margin finally 8.79 percent).


The total debt representing 13.78 percent of the company’s assets and the total debt in relation to the equity amounts to 23.78 percent. Due to the financial situation, a return on equity of 29.33 percent was realized. Twelve trailing months earnings per share reached a value of $2.38. Last fiscal year, the company paid $0.59 in form of dividends to shareholders. NUS raised dividends for 12 consecutive years. Sales are up 23.45 percent quarter over quarter and earnings 31.63 percent.


Here are the price ratios of the company: The P/E ratio is 23.91, P/S ratio 2.06 and P/B ratio 6.16. Dividend Yield: 1.41 percent. The beta ratio is 1.21.


2. Plains All American Pipelines (PAA, Financial) has a market capitalization of $12.41 billion. The company employs 3,800 people, generates revenues of $34,275.00 million and has a net income of $994.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,530.00 million. Because of these figures, the EBITDA margin is 4.46 percent (operating margin 3.79 percent and the net profit margin finally 2.90 percent).


The total debt representing 33.80 percent of the company’s assets and the total debt in relation to the equity amounts to 95.39 percent. Due to the financial situation, a return on equity of 15.47 percent was realized. Twelve trailing months earnings per share reached a value of $4.93. Last fiscal year, the company paid $3.91 in form of dividends to shareholders. PAA raised dividends for 12 consecutive years. Sales are up 22.86 percent quarter over quarter and earnings 101.64 percent.


Here are the price ratios of the company: The P/E ratio is 16.19, P/S ratio 0.37 and P/B ratio 2.36. Dividend Yield: 5.14 percent. The beta ratio is 0.49.


3. Polaris Industries (PII, Financial) has a market capitalization of $4.99 billion. The company employs 3,900 people, generates revenues of $2,656.95 million and has a net income of $227.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $392.22 million. Because of these figures, the EBITDA margin is 14.76 percent (operating margin 13.17 percent and the net profit margin finally 8.57 percent).


The total debt representing 8.73 percent of the company’s assets and the total debt in relation to the equity amounts to 21.45 percent. Due to the financial situation, a return on equity of 52.25 percent was realized. Twelve trailing months earnings per share reached a value of $3.20. Last fiscal year, the company paid $0.90 in form of dividends to shareholders. PII raised dividends for 17 consecutive years. Sales are up 26.44 percent quarter over quarter and earnings 15.96 percent.


Here are the price ratios of the company: The P/E ratio is 22.75, P/S ratio 1.88 and P/B ratio 9.97. Dividend Yield: 2.03 percent. The beta ratio is 1.79.


Take a closer look at the full table of Dividend Contenders with accelerated earnings growth. The average price to earnings ratio (P/E ratio) amounts to 22.96 and forward P/E ratio is 17.78. The dividend yield has a value of 2.79 percent. Price to book ratio is 4.61 and price to sales ratio 4.69. The operating margin amounts to 38.28 percent. Sales increased 25.34 percent compared to the figures from the same quarter last year (13.13 percent 5-year average) and the earnings per share grew 156.13 percent quarter over quarter (18.74 percent 5-year average).


Related stock ticker symbols:

UHT, PAA, EPD, MMP, SXL, SKT, OXY, PII, NUS, FAST, ALB, RGLD, CRR, VMI


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· 8 Great Dividend Contenders At New Highs

· The 10 Highest Yielding Dividend Contenders

· The Cheapest Dividend Contenders

· 15 Dividend Contenders With Buy Or Better Rating