Cheapest Dividend Paying Large Caps As of January 2013

Submitted by Dividend Yield as part of our contributors program.

Cheapest large capitalized stocks with highest earnings per share growth; originally published at “long-term-investments.blogspot.com. Growth at cheap price ratios is one the keys for a sucessful long-term investment.
A cheap stock is the basis for every future returns. Beside cheap fundamentals and pricing ratios of a company, the expected growth is an additional important item for investors. After the ongoing turbulences due to the euro debt crises and the fiscal cliff in America, there should be some bargains in relation to growth right now.

I made a screen of America’s cheapest large capitalized stocks with highest expected growth for the upcoming fiscal year. Stocks from the sheet have a market capitalization of more than USD 10 billion and earnings per share are expected to grow for at least 15 percent. Despite the strong growth, they still have a P/E ratio of less than 15 and a P/S and P/B ratio of less than two. Eleven companies fulfilled the mentioned criteria of which ten companies have a buy or better recommendation. Nine of the results pay dividends.


Here are my favorites:

The Travelers Companies (TRV) has a market capitalization of $29.73 billion. The company employs 30,000 people, generates revenue of $25.446 billion and has a net income of $1.426 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.416 billion. The EBITDA margin is 25.21 percent (the operating margin is 5.31 percent and the net profit margin 5.60 percent).

Financial Analysis: The total debt represents 6.31 percent of the company’s assets and the total debt in relation to the equity amounts to 26.98 percent. Due to the financial situation, a return on equity of 5.67 percent was realized. Twelve trailing months earnings per share reached a value of $7.00. Last fiscal year, the company paid $1.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.13, the P/S ratio is 1.14 and the P/B ratio is finally 1.22. The dividend yield amounts to 2.41 percent and the beta ratio has a value of 0.67.

The Allstate Corporation (ALL) has a market capitalization of $18.49 billion. The company employs 37,000 people, generates revenue of $32.654 billion and has a net income of $788.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.309 billion. The EBITDA margin is 28.51 percent (the operating margin is 2.99 percent and the net profit margin 2.41 percent).

Financial Analysis: The total debt represents 4.71 percent of the company’s assets and the total debt in relation to the equity amounts to 31.64 percent. Due to the financial situation, a return on equity of 4.18 percent was realized. Twelve trailing months earnings per share reached a value of $5.29. Last fiscal year, the company paid $0.84 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.36, the P/S ratio is 0.64 and the P/B ratio is finally 1.16. The dividend yield amounts to 2.04 percent and the beta ratio has a value of 1.48.

Bunge Limited (BG) has a market capitalization of $11.40 billion. The company employs 35,000 people, generates revenue of $58.743 billion and has a net income of $896.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.685 billion. The EBITDA margin is 2.87 percent (the operating margin is 1.60 percent and the net profit margin 1.53 percent).

Financial Analysis: The total debt represents 17.53 percent of the company’s assets and the total debt in relation to the equity amounts to 34.86 percent. Due to the financial situation, a return on equity of 8.05 percent was realized. Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, the company paid $0.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.30, the P/S ratio is 0.19 and the P/B ratio is finally 1.02. The dividend yield amounts to 1.40 percent and the beta ratio has a value of 1.22.

Take a look at the full list of cheap large capitalized stocks with highest expected earnings per share growth. The average P/E ratio amounts to 11.87 while the forward P/E ratio is 9.63. P/S ratio is 1.02 and P/B ratio 1.16. The expected earnings growth for next year amounts to 32.28 and 6.42 percent for the upcoming five years.

Selected Articles:
· 13 Dividend Growth Potentials With Really Cheap Price Ratios
· 13 Cheap High-Yielding Stocks With Low Volatility
· Cheap Dividend Champions | 20 Stocks With Highest Growth At Low Valuation
· 16 Really Cheap International Dividend Achievers

(Subscribe my Blog via RSS Feed or E-Mail. Alternative, you can follow me on Facebook or Twitter)