20 Income Growth Stocks That Are Much Safer Than The Whole Market

Submitted by Dividend Yield as part of our contributors program.

Dividend Aristocrats with lowest beta ratios from the index originally published at “long-term-investments.blogspot.com“.

Dividend Aristocrats are wonderful income growth stocks. They have raised their dividend payments over a period of more than 25 consecutive years and they are selected by the credit rating agency to be a constituent of the popular S&P 500 Dividend Aristocrats index.

Exactly 54 companies are part of the index but some of them are very volatile. They have a bigger risk and you can discover this by the beta ratio. Just in times of a weak and down going market, it’s good to have stocks with a very low beta ratio.

Below is a list of the 20 Dividend Aristocrats with the lowest beta ratio of the index. The ratios are between 0.16 and 0.64. Every stock on the list has a performance which represents roughly 20 to 60 percent of the overall market. In a falling market you will have a performance advantage.

Here are safest Dividend Aristocrats:

Family Dollar Stores (FDO) has a market capitalization of $6.89 billion. The company employs 33,000 people, generates revenue of $9.331 billion and has a net income of $422.24 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $904.10 million. The EBITDA margin is 9.69 percent (the operating margin is 7.37 percent and the net profit margin 4.53 percent).

Financial Analysis: The total debt represents 16.23 percent of the company’s assets and the total debt in relation to the equity amounts to 42.19 percent. Due to the financial situation, a return on equity of 35.41 percent was realized. Twelve trailing months earnings per share reached a value of $3.65. Last fiscal year, the company paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.43, the P/S ratio is 0.74 and the P/B ratio is finally 5.35. The dividend yield amounts to 1.73 percent and the beta ratio has a value of 0.12.

Consolidated Edison (ED) has a market capitalization of $16.69 billion. The company employs 14,529 people, generates revenue of $12.188 billion and has a net income of $1.141 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.294 billion. The EBITDA margin is 27.03 percent (the operating margin is 19.19 percent and the net profit margin 9.36 percent).

Financial Analysis: The total debt represents 27.44 percent of the company’s assets and the total debt in relation to the equity amounts to 95.28 percent. Due to the financial situation, a return on equity of 9.77 percent was realized. Twelve trailing months earnings per share reached a value of $3.58. Last fiscal year, the company paid $2.42 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.94, the P/S ratio is 1.36 and the P/B ratio is finally 1.39. The dividend yield amounts to 4.35 percent and the beta ratio has a value of 0.15.

Kimberly Clark (KMB) has a market capitalization of $36.81 billion. The company employs 58,000 people, generates revenue of $21.063 billion and has a net income of $1.652 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.677 billion. The EBITDA margin is 17.46 percent (the operating margin is 12.75 percent and the net profit margin 7.84 percent).

Financial Analysis: The total debt represents 33.89 percent of the company’s assets and the total debt in relation to the equity amounts to 135.09 percent. Due to the financial situation, a return on equity of 34.20 percent was realized. Twelve trailing months earnings per share reached a value of $4.60. Last fiscal year, the company paid $2.96 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.82, the P/S ratio is 1.78 and the P/B ratio is finally 7.62. The dividend yield amounts to 3.32 percent and the beta ratio has a value of 0.29.

Take a closer look at the full list of the safest Dividend Aristocrats. The average P/E ratio amounts to 22.29 and forward P/E ratio is 15.46. The dividend yield has a value of 2.59 percent. Price to book ratio is 8.88 and price to sales ratio 1.97. The operating margin amounts to 14.23 percent and the beta ratio is 0.43. Stocks from the list have an average debt to equity ratio of 1.60.

Selected Articles:

· 20 Most Profitable Dividend Aristocrats
· 7 Dividend Aristocrats With The Highest Payout Potential
· 20 Most Recommended Dividend Aristocrats Index Stocks
· 19 Dividend Aristocrats With Over 10% EPS Forecasts

*If you like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternative, you can follow me on Facebook or Twitter.