The Best Growing Consumer Dividend Stocks For The Next Five Years
This article was submitted by Dividend Yield using our Trefis Contributors tool
Stocks from the consumer goods sector are characterized by low volatility and stable dividends, but they also have a slow growth especially due to the aftereffects of the financial and debt crises.
I made a screen of the sector by the best yielding stocks with highest expected growth for the next five years. I decided to select only stocks whose earnings per share are expected to grow by more than 10 percent for the next five years and their dividend yields are above 3 percent. Exactly thirteen stocks fulfilled these criteria of which three are high yields. Eight stocks are recommended with a buy or better rating. It does not surprise that four companies belong to the cigarettes industry.
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Here are my favorite stocks:
Lorillard (LO) has a market capitalization of $16.16 billion. The company employs 2,700 people, generates revenues of $6,466.00 million and has a net income of $1,116.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,892.00 million. Because of these figures, the EBITDA margin is 29.26 percent (operating margin 29.26 percent and the net profit margin finally 17.26 percent).
The total debt representing 86.27 percent of the company’s assets and the total debt in relation to the equity amounts to percent. Due to the financial situation, a return on equity of percent was realized. Twelve trailing months earnings per share reached a value of $8.01. Last fiscal year, the company paid $5.45 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 15.29, Price/Sales 2.56 and Price/Book ratio is not calculable. Dividend Yield: 4.24 percent. The beta ratio is 0.38.
British American Tobacco (BTI) has a market capitalization of $97.97 billion. The company employs 92,285 people, generates revenues of $23,423.04 million and has a net income of $4,941.77 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,588.92 million. Because of these figures, the EBITDA margin is 32.40 percent (operating margin 29.01 percent and the net profit margin finally 21.10 percent).
The total debt representing 36.79 percent of the company’s assets and the total debt in relation to the equity amounts to 111.34 percent. Due to the financial situation, a return on equity of 34.24 percent was realized. Twelve trailing months earnings per share reached a value of $5.09. Last fiscal year, the company paid $3.59 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 19.41, Price/Sales 4.13 and Price/Book ratio 6.78. Dividend Yield: 3.92 percent. The beta ratio is 0.59.
Philip Morris (PM) has a market capitalization of $141.76 billion. The company employs 78,300 people, generates revenues of $76,346.00 million and has a net income of $8,879.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14,325.00 million. Because of these figures, the EBITDA margin is 18.76 percent (operating margin 17.46 percent and the net profit margin finally 11.63 percent).
The total debt representing 52.26 percent of the company’s assets and the total debt in relation to the equity amounts to 8,098.25 percent. Due to the financial situation, a return on equity of 457.40 percent was realized. Twelve trailing months earnings per share reached a value of $4.85. Last fiscal year, the company paid $2.82 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 16.83, Price/Sales 1.83 and Price/Book ratio 610.14. Dividend Yield: 3.83 percent. The beta ratio is 0.84.
Take a closer look at the full table of the best yielding consumer dividend stocks with highest expected growth. The average price to earnings ratio (P/E ratio) amounts to 17.65 and forward P/E ratio is 13.74. The dividend yield has a value of 3.78 percent. Price to book ratio is 2.84 and price to sales ratio 1.57. The operating margin amounts to 14.22 percent.