14 Of The Safest Dividend Aristocrats

by Dividend Yield
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PEP
PepsiCo
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Dividend Aristocrats are stocks that have raised dividends over a period of more than 25 consecutive years and they are part of the S&P 500 Dividend Aristocrats Index. The index measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years. Unfortunately, the index covers only 25 percent of all stocks with such a long dividend payment history. The other stocks can be discovered as Dividend Champions. However, I’ve tried to summarize only stocks with a very low volatility, measured by a low beta ratio (a value of less than 0.5). Fourteen companies remained of which six have a yield of more than 3 percent. Five stocks have a buy or better recommendation.
Here are my favorite stocks:

1. PepsiCo (PEP) has a market capitalization of $98.03 billion. The company employs 294,000 people, generates revenues of $66,504.00 million and has a net income of $6,462.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,370.00 million. Because of these figures, the EBITDA margin is 18.60 percent (operating margin 14.48 percent and the net profit margin finally 9.72 percent).

The total debt representing 36.73 percent of the company’s assets and the total debt in relation to the equity amounts to 130.04 percent. Due to the financial situation, a return on equity of 30.70 percent was realized. Twelve trailing months earnings per share reached a value of $4.02. Last fiscal year, the company paid $2.02 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 15.61, Price/Sales 1.47 and Price/Book ratio 4.73. Dividend Yield: 3.29 percent. The beta ratio is 0.49.

2. The Procter & Gamble Company (PG) has a market capitalization of $178.79 billion. The company employs 129,000 people, generates revenues of $82,559 million and has a net income of $11,797 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,656.00 million. Because of these figures, the EBITDA margin is 22.60 percent (operating margin 19.16 percent and the net profit margin finally 14.29 percent).

The total debt representing 23.14 percent of the company’s assets and the total debt in relation to the equity amounts to 47.33 percent. Due to the financial situation, a return on equity of 18.32 percent was realized. Twelve trailing months earnings per share reached a value of $3.40. Last fiscal year, the company paid $1.97 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 19.09, Price/Sales 2.17 and Price/Book ratio 2.70. Dividend Yield: 3.24 percent. The beta ratio is 0.43.

3. Colgate-Palmolive Company (CL) has a market capitalization of $45.13 billion. The company employs 39,200 people, generates revenues of $16,734.00 million and has a net income of $2,554.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,262.00 million. Because of these figures, the EBITDA margin is 25.47 percent (operating margin 22.95 percent and the net profit margin finally 15.26 percent).

The total debt representing 37.80 percent of the company’s assets and the total debt in relation to the equity amounts to 202.53 percent. Due to the financial situation, a return on equity of 96.28 percent was realized. Twelve trailing months earnings per share reached a value of $4.94. Last fiscal year, the company paid $2.27 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 18.87, Price/Sales 2.70 and Price/Book ratio 19.00. Dividend Yield: 2.49 percent. The beta ratio is 0.42.

Take a closer look at the full table of the safest Dividend Aristocrats. The average price to earnings ratio (P/E ratio) amounts to 17.84 and forward P/E ratio is 14.05. The dividend yield has a value of 2.32 percent. Price to book ratio is 5.58 and price to sales ratio 1.72. The operating margin amounts to 14.33 percent.

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