13 High-Beta Dividend Champions with Cheap Forward P/Es

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Aug 09, 2013
The dividend champions list is a compressed compilation of stocks with the longest dividend growth history. Those stocks raised their cash dividend payments over a period of more than 25 years.

In my current article serial, I write about high beta stocks and the possibility to make more money in a bullish market with high beta stocks. High beta stocks are more closely correlated with the market and can result in a higher performance.

Today I would like to observe those Dividend Champions with a beta ratio above one as well as a forward P/E below 15. It’s very important to make sure that the companies are cheap because only with a high initial earnings yield you can increase the possibility of a good long-term total return. Thirteen stocks fulfilled the above mentioned criteria of which 10 are currently recommended to buy.

Here are the highest yielding results:



Diebold (DBD)
has a market capitalization of $1.96 billion. The company employs 16,751 people, generates revenue of $2.991 billion and has a net income of $87.52 million. Diebold’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $276.80 million. The EBITDA margin is 9.25 percent (the operating margin is 4.17 percent and the net profit margin 2.93 percent).

Financial Analysis: The total debt represents 25.13 percent of Diebold’s assets and the total debt in relation to the equity amounts to 82.50 percent. Due to the financial situation, a return on equity of 10.09 percent was realized by Diebold. Twelve trailing months earnings per share reached a value of $-1.61. Last fiscal year, Diebold paid $1.14 in the form of dividends to shareholders. Forward P/E: 13.87.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.66 and the P/B ratio is finally 2.47. The dividend yield amounts to 3.73 percent and the beta ratio has a value of 1.01.

Universal (UVV) has a market capitalization of $1.38 billion. The company employs 25,000 people, generates revenue of $2.461 billion and has a net income of $140.92 million. Universal’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $269.12 million. The EBITDA margin is 10.93 percent (the operating margin is 9.06 percent and the net profit margin 5.72 percent).

Financial Analysis: The total debt represents 21.59 percent of Universal’s assets and the total debt in relation to the equity amounts to 39.55 percent. Due to the financial situation, a return on equity of 11.70 percent was realized by Universal. Twelve trailing months earnings per share reached a value of $5.89. Last fiscal year, Universal paid $1.98 in the form of dividends to shareholders. Forward P/E: 11.74.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.06, the P/S ratio is 0.56 and the P/B ratio is finally 1.32. The dividend yield amounts to 3.37 percent and the beta ratio has a value of 1.08.

Nucor (NUE) has a market capitalization of $15.04 billion. The company employs 22,200 people, generates revenue of $19.429 billion and has a net income of $593.13 million. Nucor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.665 billion. The EBITDA margin is 8.57 percent (the operating margin is 4.39 percent and the net profit margin 3.05 percent).

Financial Analysis: The total debt represents 26.24 percent of Nucor’s assets and the total debt in relation to the equity amounts to 48.60 percent. Due to the financial situation, a return on equity of 6.65 percent was realized by Nucor. Twelve trailing months earnings per share reached a value of $1.30. Last fiscal year, Nucor paid $1.46 in the form of dividends to shareholders. Forward P/E: 13.93.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 36.26, the P/S ratio is 0.77 and the P/B ratio is finally 1.97. The dividend yield amounts to 3.11 percent and the beta ratio has a value of 1.12.

Helmerich & Payne (HP) has a market capitalization of $7.22 billion. The company employs 9,410 people, generates revenue of $3.151 billion and has a net income of $573.61 million. Helmerich & Payne’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.277 billion. The EBITDA margin is 40.55 percent (the operating margin is 28.86 percent and the net profit margin 18.20 percent).

Financial Analysis: The total debt represents 4.11 percent of Helmerich & Payne’s assets and the total debt in relation to the equity amounts to 6.13 percent. Due to the financial situation, a return on equity of 16.08 percent was realized by Helmerich & Payne. Twelve trailing months earnings per share reached a value of $6.57. Last fiscal year, Helmerich & Payne paid $0.28 in the form of dividends to shareholders. Forward P/E: 12.31.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.32, the P/S ratio is 2.29 and the P/B ratio is finally 1.87. The dividend yield amounts to 2.95 percent and the beta ratio has a value of 1.37.

Take a closer look at the full list of cheap high beta Dividend Champions. The average P/E ratio amounts to 24.32 and forward P/E ratio is 13.18. The dividend yield has a value of 2.13 percent. Price to book ratio is 2.35 and price to sales ratio 1.32. The operating margin amounts to 13.69 percent and the beta ratio is 1.33. Stocks from the list have an average debt to equity ratio of 0.48.

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Related Stock Ticker Symbols:

DBD, UVV, NUE, HP, WAG, SWK, AFL, PH, DOV, CSL, SCL, FUL, BEN

Selected Articles:

· Dividend Champions With Highest YTD Performance And Still Low P/E’s

· 14 Low Priced Dividend Champions

· 20 Most Profitable Dividend Champions

· 20 Dividend Champions With Highest 10-Year Dividend Growth Rates

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