My 3 Favorites From the Best Dividend Paying Stock List - January 2013

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Jan 01, 2013
Happy new year fellow investors. I hope 2013 will become a great year for our asset allocation.

Let's start my first post for this year with our regular best dividend paying stock list.

The best equity investment is a stock with good fundamentals and a convincing equity story. If this stock is also attractively valuated, it could promise good returns. I’ve tried to summarize some significant fundamentals in order to screen the whole capital markets by interesting dividend stocks.

Every month I create a quick dividend list of stocks with interesting performance and valuation figures (from low-yield to high-yield paying stocks). Stocks from that list are mid- and large-caps (market capitalization of more than $1 billion) with double-digit long-term earnings growth rates. The companies are traded at American Stock Exchange, New York Stock Exchange, Nassaq and part of the Dow Jones, S&P 500 or Nasdaq Composite. The list is selected by the following criteria and sorted by dividend yield.

Market Capitalization: > 1 billion

Price/Earnings Ratio: > 0< 100

Dividend Yield: > 3< 20

Return on Investment: > 10< 100

Operating Margin: > 10< 100

10-Year Revenue Growth: > 8< 200

10-Year EPS Growth: > 10< 100

Here are my most promising stocks from the list:

Southern Copper (SCCO) has a market capitalization of $32.01 billion. The company employs 12,145 people, generates revenue of $6.818 billion and has a net income of $2.344 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.913 billion. The EBITDA margin is 57.39 percent (the operating margin is 53.17 percent and the net profit margin is 34.38 percent).

Financial Analysis: The total debt represents 34.05 percent of the company’s assets and the total debt in relation to the equity amounts to 68.38 percent. Due to the financial situation, a return on equity of 59.11 percent was realized. Twelve trailing months earnings per share reached a value of $2.28. Last fiscal year, the company paid $2.43 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.58, the P/S ratio is 4.62 and the P/B ratio is finally 7.89. The dividend yield amounts to 9.95 percent and the beta ratio has a value of 1.56.

MFA Financial (MFA) has a market capitalization of $2.90 billion. The company employs 35 people, generates revenue of $496.75 million and has a net income of $316.41 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $308.25 million. The EBITDA margin is 62.05 percent (the operating margin is 62.12 percent and the net profit margin is 63.70 percent).

Financial Analysis: The total debt represents 73.94 percent of the company’s assets and the total debt in relation to the equity amounts to 347.86 percent. Due to the financial situation, a return on equity of 12.91 percent was realized. Twelve trailing months earnings per share reached a value of $0.84. Last fiscal year, the company paid $0.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.69, the P/S ratio is 5.81 and the P/B ratio is 1.15. The dividend yield amounts to 9.91 percent and the beta ratio has a value of 0.33.

Alliance Resource Partners (ARLP) has a market capitalization of $2.14 billion. The company employs 3,832 people, generates revenue of $1,843.56 million and has a net income of $389.35 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $573.26 million. The EBITDA margin is 31.10 percent (the operating margin is 22.40 percent and the net profit margin is 21.12 percent).

Financial Analysis: The total debt represents 40.84 percent of the company’s assets and the total debt in relation to the equity amounts to 113.37 percent. Due to the financial situation, a return on equity of 36.30 percent was realized. Twelve trailing months earnings per share reached a value of $6.19. Last fiscal year, the company paid $3.63 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.38, the P/S ratio is 1.15 and the P/B ratio is 2.34. The dividend yield amounts to 7.55 percent and the beta ratio has a value of 0.78.

Take a closer look at the full table of the best dividend paying stocks. The average P/E ratio amounts to 14.57 while the dividend yield has a value of 4.71 percent. Its P/B ratio is 3.55 and P/S ratio is 2.83. The operating margin amounts to 26.58 percent. The earnings per share grew by 19.5 yearly over the past decade and sales by 16.66 percent.

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The Best Dividend-Paying Stocks lists are originally posted on Dividend Yield – Stock, Capital, Investment.