The following stocks have rewarded their shareholders with substantial gains so far this year and over the past several years. The main driver has been the companies' ability to generate enough earnings to allow them to continue paying dividends.
GuruFocus’ positive rating for profitability suggests these companies will continue to post strong performances in the coming years. Wall Street supports this expectation as it issued overweight recommendation ratings for each of them.
Further, despite the impressive gains, the stocks are still affordable based on the Peter Lynch value.
Shares of China Merchants Bank Co. Ltd. (CIHKY, Financial) have gained 30% so far this year, 22.6% over the last 52 weeks and 168% over the past five years through Oct. 2.
The Chinese regional bank pays annual dividends. On Aug. 28, the company paid 68.2 cents per common share to its shareholders, generating a forward dividend yield of 2.91% versus the industry median of 3.21% and the S&P 500’s yield of 1.94% as of Oct. 2. The company has paid dividends for 8 years.
GuruFocus assigned a rating of 3 out of 10 for the bank's financial strength and a 5 out of 10 rating for its profitability and growth.
China Merchants Bank has a net profit margin of 33.4% versus the industry median of 25.26%. The company’s net margin is ranked higher than 1,124 out of a total of 1,480 companies operating in the Banks - Regional - Asia industry.
Shares of China Merchants Bank closed at $23.47 on Wednesday for a market capitalization of $118.38 billion.
The stock has a price-earnings ratio of 10.48, a price-sales ratio of 3.49 and a price-book ratio of 1.65. The Peter Lynch chart suggests the stock is not expensive.
Sell-side analysts set an average target price of $38.14 per American depository receipt of China Merchants Bank.
Shares of The Hartford Financial Services Group Inc. (HIG, Financial) have gained 30.6% year to date, 17.1% over the last 52 weeks and 57% over the past five years through Oct. 2.
The Hartford, Connecticut-based insurer and financial services provider pays quarterly dividends. On Oct. 1, the company paid 30 cents per common share, producing a forward dividend yield of 2.02% compared to the industry median of 4.5% and versus the S&P 500’s yield of 1.94%. The company has paid quarterly dividends since April 1, 1996.
GuruFocus rated the company's financial strength 3 out of 10 and its profitability and growth 5 out of 10.Â
Hartford Financial has a net profit margin of 8.36%, which is higher than the industry median of 6.89%. The company's net margin is ranked higher than 111 out of a total of 189 companies operating in the Insurance – Diversified industry.
The stock closed at $58.07 per share on Wednesday for a market capitalization of $21 billion.
The stock has a price-earnings ratio of 13.08, a price-sales ratio of 1.09 and a price-book ratio of 1.42. According to the Peter Lynch chart, the stock is cheap.
Wall Street issued an average target price of $63.82 per share of Hartford Financial Services.
Shares of ChipMOS Technologies Inc. (IMOS, Financial) have climbed 23.8% year to date, 15.5% over the last 52 weeks and 8.5% over the past five years through Oct. 2.
Currently, the Taiwanese semiconductor manufacturer pays annual dividends. On Sept. 9, ChipMOS paid 76.4 cents per common share to its shareholders. The distribution produces a forward dividend yield of 3.66% compared to the industry median of 2.27% and versus the S&P 500’s yield of 1.94%. Dividends have been distributed since December 2016.
GuruFocus assigned a rating of 5 out of 10 for the company's financial strength and a 6 out of 10 rating for its profitability and growth.
ChipMOS has a net profit margin of 12.58% versus the industry median of 3.88%. The company's net profit margin is ranked higher than 653 out of a total of 847 companies that operate in the Semiconductors industry.
Shares of ChipMOS closed at $20.85 on Wednesday for a market capitalization of $758.11 million. It has a price-earnings ratio of 9.26, a price-sales ratio of 1.2 and a price-book ratio of 1.28. Based on the Peter Lynch chart, the stock appears to be cheap.
Wall Street set an average target price of $22.17 per American depository receipt of ChipMOS Technologies.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- PepsiCo Jumps on 3rd-Quarter Earnings Beat
- 2 Stocks to Sell
- 3 Companies Growing Earnings Faster Than the S&P 500
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
