Dividend growth stocks with low payout and debt ratios originally published at "long-term-investments.blogspot.com". When I consider buying a stock, I always look at the fundamentals of a company. The current yields and P/E's are a first step but both are only two of hundreds criteria.
If you like to evaluate the future dividend growth you should definitely look at the debt situation and the payout ratio. Also important is the expected growth. Only a growing company can hike its dividends in the long-run without paying out capital assets and destroying shareholder values.
Today I like to present Dividend Contenders with the highest dividend payout potential. If they succeed to hike further dividends over the next few years, they can become a Dividend Champion very soon. These are my criteria:
- Payout ratio below 30 percent
- Long-Term Debt to equity under 0.2
- Market Capitalization over 300 million
Nineteen companies fulfilled the above mentioned criteria. Ten have a current buy or better rating.
Here is the full table with some fundamentals:
19 Dividend Contenders With Real Big Dividend Growth Potential...
Take a closer look at the full list. The average P/E ratio amounts to 15.64 and forward P/E ratio is 14.22. The dividend yield has a value of 1.59 percent. Price to book ratio is 3.01 and price to sales ratio 2.31. The operating margin amounts to 21.10 percent and the beta ratio is 0.93. Stocks from the list have an average debt to equity ratio of 0.13.
Related stock ticker symbols:
ACE, AOS, ATRI, AXS, BMI, CHRW, DGICB, FDS, FDX, HCC, IMO, LECO, LNN, MSM, PB, PRE, QCOM, RNR, ROST
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