19 Consumer Dividend Stocks with Highest Sector Growth

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Feb 17, 2013
Growth is a must have but with rising growth rates, price ratios also go up. You should be careful with stocks that have a P/E ratio over 20 and a huge load of debt.

Today, I would like to screen stocks from the consumer goods sector, one of my favorite investment fields. Two-thirds of my personal stock holdings have a relation to the consumer area. I love those stocks especially when they are well managed and pay great dividends.

Consumer stocks are normally characterized by low cyclic stocks which produce solid returns on the invested capital. My screening criteria are:

- Positive Dividend Yield

- Market Capitalization over 10 billion

- Relationship to the Consumer Goods Sector

- EPS Growth over 10 Percent for the next 5 Years

Nineteen stocks matched my criteria of which fifteen have a current buy or better ratio. Car maker and supplier of them are dominating the results. Those are also stocks with the highest beta ratios.



Here are my favorite stocks:

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NIKE (NKE)
has a market capitalization of $49.52 billion. The company employs 44,000 people, generates revenue of $24.128 billion and has a net income of $2.223 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.382 billion. The EBITDA margin is 14.02 percent (the operating margin is 12.36 percent and the net profit margin 9.21 percent).

Financial Analysis: The total debt represents 2.49 percent of the company’s assets and the total debt in relation to the equity amounts to 3.71 percent. Due to the financial situation, a return on equity of 21.98 percent was realized. Twelve trailing months earnings per share reached a value of $2.39. Last fiscal year, the company paid $0.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.00, the P/S ratio is 2.05 and the P/B ratio is finally 4.86. The dividend yield amounts to 1.53 percent and the beta ratio has a value of 0.85.

Ecolab (ECL) has a market capitalization of $22.03 billion. The company employs 40,200 people, generates revenue of $6.798 billion and has a net income of $463.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.149 billion. The EBITDA margin is 16.91 percent (the operating margin is 11.09 percent and the net profit margin 6.81 percent).

Financial Analysis: The total debt represents 41.86 percent of the company’s assets and the total debt in relation to the equity amounts to 134.76 percent. Due to the financial situation, a return on equity of 11.87 percent was realized. Twelve trailing months earnings per share reached a value of $1.93. Last fiscal year, the company paid $0.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 39.03, the P/S ratio is 3.24 and the P/B ratio is finally 3.88. The dividend yield amounts to 1.22 percent and the beta ratio has a value of 0.67.

Estee Lauder (EL) has a market capitalization of $24.44 billion. The company employs 38,500 people, generates revenue of $9.713 billion and has a net income of $860.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.612 billion. The EBITDA margin is 16.60 percent (the operating margin is 13.50 percent and the net profit margin 8.86 percent).

Financial Analysis: The total debt represents 19.54 percent of the company’s assets and the total debt in relation to the equity amounts to 47.13 percent. Due to the financial situation, a return on equity of 31.96 percent was realized. Twelve trailing months earnings per share reached a value of $2.35. Last fiscal year, the company paid $0.52 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.87, the P/S ratio is 2.51 and the P/B ratio is finally 8.98. The dividend yield amounts to 1.14 percent and the beta ratio has a value of 1.33.

Take a closer look at the full list of the best growing consumer stocks. The average P/E ratio amounts to 21.60 and forward P/E ratio is 17.37. The dividend yield has a value of 2.05 percent. Price to book ratio is 6.01 and price to sales ratio 3.16. The operating margin amounts to 15.05 percent and the beta ratio is 1.17. Stocks from the list have an average debt to equity ratio of 6.28.

Related stock ticker symbols:

PM, ABV, F, NSANY, HMC, COH, JCI, VFC, BF-B, MDLZ, HOG, NKE, MJN, TM, FMX, ECL, KOF, EL, RL

Selected Articles:

· The Most Recommended Consumer Goods Stocks

· Best Consumer Stock Picks For 2013

· The Best Consumer Goods Stocks To Buy

· The 20 Biggest Consumer Goods Dividend Payers

Consumer dividend stocks with highest expected growth originally published at long-term-investments.blogspot.com. Growth, that’s the most important factor when you trade stocks and like to make money over the long-run.