These Are The Greatest Dividend Stocks With Double-Digit Earnings Growth

CMI: Cummins logo
CMI
Cummins

Submitted by Dividend Yield as part of our contributors program.

These Are The Greatest Dividend Stocks With Double-Digit Earnings Growth

Long-Term dividend growth investors need to look at the expected earnings growth of a company. The idea is simple: A growing company will also raise dividends if they don’t strengthen their dividend policy.

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What you also need to do is to observe the current market price of the company. If you pay 20 times of actual sales, you must have a very fast growing and highly profitable business to achieve a solid return in the future.

Below, I’ve compiled 3 stocks with double digit earnings forecasts for the mid-term and solid valuation figures.

These are the results:

#1 Cummins — Yield: 2.22%

Cummins (NYSE:CMI) employs 54,600 people, generates revenue of $19,221.00 million and has a net income of $1,736.00 million. The current market capitalization stands at $25.45 billion.

Cummins’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,393.00 million. The EBITDA margin is 12.45% (the operating margin is 12.30% and the net profit margin 9.03%).

Financials: The total debt represents 10.76% of Cummins assets and the total debt in relation to the equity amounts to 21.91%. Due to the financial situation, a return on equity of 21.64% was realized by Cummins.

Twelve trailing months earnings per share reached a value of $9.33. Last fiscal year, Cummins paid $2.81 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.06, the P/S ratio is 1.33 and the P/B ratio is finally 3.30. The dividend yield amounts to 2.22%.

#2 Union Pacific — Yield: 2.14%

Union Pacific (NYSE:UNP) employs 48,830 people, generates revenue of $23,988.00 million and has a net income of $5,180.00 million. The current market capitalization stands at $89.95 billion.

Union Pacific’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,657.00 million. The EBITDA margin is 44.43% (the operating margin is 36.49% and the net profit margin 21.59%).

Financials: The total debt represents 21.78% of Union Pacific assets and the total debt in relation to the equity amounts to 54.18%. Due to the financial situation, a return on equity of 24.43% was realized by Union Pacific.

Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, Union Pacific paid $1.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.49, the P/S ratio is 3.76 and the P/B ratio is finally 4.28. The dividend yield amounts to 2.14%.

#3 Johnson Controls Incorporation — Yield: 2.02%

Johnson Controls Incorporation (NYSE:JCI) employs 168,000 people, generates revenue of $42,828.00 million and has a net income of $1,553.00 million. The current market capitalization stands at $33.55 billion.

Johnson Controls Incorporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,257.00 million. The EBITDA margin is 7.60% (the operating margin is 4.75% and the net profit margin 3.63%).

Financials: The total debt represents 14.96% of Johnson Controls Incorporation assets and the total debt in relation to the equity amounts to 43.37%. Due to the financial situation, a return on equity of 12.13% was realized by Johnson Controls Incorporation.

Twelve trailing months earnings per share reached a value of $2.23. Last fiscal year, Johnson Controls Incorporation paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.11, the P/S ratio is 0.79 and the P/B ratio is finally 3.03. The dividend yield amounts to 2.02%. – Check out more here: Great Dividend Stocks With Double-Digit Earnings Growth…