6 Cheap Dividend Aristocrats With High Growth Predicted

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Sep 21, 2014

When you think about making money, you have several ways to become a millionaire. Nowadays, people think they only need to start-up a company, build in 5 years a 50 million customer base and bang; sold for a million to a bigger company. Sure, that's a very lucrative way but also unrealistic for normal people like us. Most of us don't have the skills to develop a company, find customers and train people to work for us. Not enough, you must have a high-margin idea.

Dividend investors have it easier. They only need to buy strong dividend paying companies that grow their earnings over years and share profits with their owners fairly. You will definitely not get quick rich but you can achieve an eight percent return or more.

I sit here in my room and watch the market day by day with hopes to find new investments that could lift my personal wealth. All of my stocks that I own pay dividends; not all developed well but they gave me a good return over the mid-term.

I believe in big companies because they have more money and employed hands to help other divisions if those struggle. The price you pay for that low risk strategy is that you won't become a billionaire but that's something I can live with.

Attached are six Dividend Aristocrats with the highest expected 5-year forward earnings growth and a low forward P/E multiple. I think it's very informative to see which of them have the best potential for the future.

6 Cheap Dividend Aristocrats with highest expected earnings per share growth are...

#1 Chevron (NYSE:CVX) has a market capitalization of $237.29 billion. The company employs 64,600 people, generates revenue of $220.264 billion and has a net income of $21.597 billion. Chevron's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41.912 billion. The EBITDA margin is 19.03 percent (the operating margin is 12.59 percent and the net profit margin 9.81 percent).

Financial Analysis: The total debt represents 8.05 percent of Chevron's assets and the total debt in relation to the equity amounts to 13.70 percent. Due to the financial situation, a return on equity of 15.00 percent was realized by Chevron. Twelve trailing months earnings per share reached a value of $10.48. Last fiscal year, Chevron paid $3.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.90, the P/S ratio is 1.08 and the P/B ratio is finally 1.60. The dividend yield amounts to 3.43 percent and the beta ratio has a value of 1.09. - See more here: 6 Cheap Dividend Aristocrats With High Growth Predicted...