4 Top Dow Jones Stocks With The Strongest Dividend Growth
Submitted by Dividend Yield as part of our contributors program.
Stocks from the Dow Jones Index with the highest rate of dividend growth originally published at “long-term-investments.blogspot.com“. I ever told that growth is the key for wealth. If your target company grows, no matter how fast, it will get bigger and bigger over the time. More important is that the company grows faster than their competitors in order to gain market share and strength business power.
The Dow Jones Index is full of great growth stocks. Some grew well, others extraordinary good and others not so spectacularly. The latest category will be removed from the index in the long-run.
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While many investors look solely at current yield as their gauge of whether a dividend stock is a smart buy, the better bet is to focus on long-term dividend growth. If a company can boost its payout consistently over the years, then it will eventually reward shareholders much more than a company that pays an unsustainably high dividend yield that shrinks in the near future.
With that goal in mind, let’s look today at the four companies among the Dow Jones Industrials that have done the best job of boosting their dividend payouts over the past five years. Linked are the four best results. Three of them have a current buy or better rating.
Here are my favorite stocks:
Intel (INTC) has a market capitalization of $107.03 billion. The company employs 104,700 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54 percent (the operating margin is 27.44 percent and the net profit margin 20.63 percent).
Financial Analysis: The total debt represents 15.94 percent of the company’s assets and the total debt in relation to the equity amounts to 26.26 percent. Due to the financial situation, a return on equity of 22.66 percent was realized. Twelve trailing months earnings per share reached a value of $2.13. Last fiscal year, the company paid $0.87 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.16, the P/S ratio is 2.01 and the P/B ratio is finally 2.09. The dividend yield amounts to 4.16 percent and the beta ratio has a value of 1.02.
Microsoft Corporation (MSFT) has a market capitalization of $233.78 billion. The company employs 94,000 people, generates revenue of $73.723 billion and has a net income of $16.978 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.819 billion. The EBITDA margin is 33.67 percent (the operating margin is 29.92 percent and the net profit margin 23.03 percent).
Financial Analysis: The total debt represents 9.85 percent of the company’s assets and the total debt in relation to the equity amounts to 18.00 percent. Due to the financial situation, a return on equity of 27.51 percent was realized. Twelve trailing months earnings per share reached a value of $1.82. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.31, the P/S ratio is 3.17 and the P/B ratio is finally 3.52. The dividend yield amounts to 3.30 percent and the beta ratio has a value of 0.94.
Intl. Business Machines (IBM) has a market capitalization of $235.26 billion. The company employs 434,246 people, generates revenue of $104.507 billion and has a net income of $16.604 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26.393 billion. The EBITDA margin is 25.25 percent (the operating margin is 20.96 percent and the net profit margin 15.89 percent).
Financial Analysis: The total debt represents 27.91 percent of the company’s assets and the total debt in relation to the equity amounts to 176.40 percent. Due to the financial situation, a return on equity of 85.15 percent was realized. Twelve trailing months earnings per share reached a value of $14.41. Last fiscal year, the company paid $3.30 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.61, the P/S ratio is 2.25 and the P/B ratio is finally 12.47. The dividend yield amounts to 1.61 percent and the beta ratio has a value of 0.70.
UnitedHealth Group (UNH) has a market capitalization of $56.20 billion. The company employs 133,000 people, generates revenue of $110.618 billion and has a net income of $5.526 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.563 billion. The EBITDA margin is 9.55 percent (the operating margin is 8.37 percent and the net profit margin 5.00 percent).
Financial Analysis: The total debt represents 20.71 percent of the company’s assets and the total debt in relation to the equity amounts to 53.74 percent. Due to the financial situation, a return on equity of 18.58 percent was realized. Twelve trailing months earnings per share reached a value of $5.28. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.38, the P/S ratio is 0.51 and the P/B ratio is finally 1.79. The dividend yield amounts to 1.55 percent and the beta ratio has a value of 0.87.
Take a closer look at the full list of the fastest dividend growers of the Dow Jones. The average P/E ratio amounts to 13.44 and forward P/E ratio is 9.82. The dividend yield has a value of 2.15 percent. Price to book ratio is 5.83 and price to sales ratio 1.99. The operating margin amounts to 18.70 percent and the beta ratio is 0.84. Stocks from the list have an average debt to equity ratio of 0.83.
Selected Articles:
· Dogs Of The Dow Jones Strategy: The 10 Best Stock Index Picks
· 50 Top Stocks With The Highest Dividend Growth In February 2013
· 20 Dividend Contenders With High Growth And Cheap Price Ratios
· 10 Stocks With Very High Yields And Expected Earnings Growth
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