Great dividend paying stocks with low debt ratios originally published at long-term-investments.blogspot.com. Dividend growth is wonderful but it does not mean a good return in the end. Out there are also stocks that hiked dividends over 10 years or more but they delivered only a 3 percent annual return of which 2 percent are explainable to cash dividend payments.
A good dividend growth stocks is a pick that delivers adequate returns far above the expected inflation rate. Nobody knows which stock can give you this but one critical factor is the amount of debt. A low leveraged stock has more possibilities to grow in an easy way.
Today I would like to share some great dividend stocks with low debt ratios. Great dividend stocks are those stocks that have delivered good growth and high returns combined in the past.
I used a restriction of a debt to equity ratio of 0.5 percent. Eleven stocks fulfilled my criteria of which six are recommended to buy.
Here are my favorite stocks:
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Cincinnati Financial Corporation (NASDAQ:CINF) has a market capitalization of $7.58 billion. The company employs 4,057 people, generates revenue of $4.111 billion and has a net income of $421.00 million. Cincinnati Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $657.00 million. The EBITDA margin is 15.98 percent (the operating margin is 13.77 percent and the net profit margin 10.24 percent).
Financial Analysis: The total debt represents 5.63 percent of Cincinnati Financial’s assets and the total debt in relation to the equity amounts to 17.07 percent. Due to the financial situation, a return on equity of 8.03 percent was realized by Cincinnati Financial. Twelve trailing months earnings per share reached a value of $3.45. Last fiscal year, Cincinnati Financial paid $1.62 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.44, the P/S ratio is 1.85 and the P/B ratio is finally 1.39. The dividend yield amounts to 3.61 percent and the beta ratio has a value of 0.70.
| Long-Term Stock Price Chart Of Cincinnati Financial (CINF) |
| Long-Term Dividend Payment History of Cincinnati Financial (CINF) |
| Long-Term Dividend Yield History of Cincinnati Financial (CINF) |
Chevron Corporation (NYSE:CVX) has a market capitalization of $239.36 billion. The company employs 62,000 people, generates revenue of $241.909 billion and has a net income of $26.336 billion. Chevron’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.975 billion. The EBITDA margin is 24.79 percent (the operating margin is 19.15 percent and the net profit margin 10.89 percent).
Financial Analysis: The total debt represents 5.23 percent of Chevron’s assets and the total debt in relation to the equity amounts to 8.93 percent. Due to the financial situation, a return on equity of 20.30 percent was realized by Chevron. Twelve trailing months earnings per share reached a value of $12.34. Last fiscal year, Chevron paid $3.51 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.04, the P/S ratio is 0.99 and the P/B ratio is finally 1.77. The dividend yield amounts to 3.23 percent and the beta ratio has a value of 0.82.
| Long-Term Stock Price Chart Of Chevron (CVX) |
| Long-Term Dividend Payment History of Chevron (CVX) |
| Long-Term Dividend Yield History of Chevron (CVX) |
Erie Indemnity Company (NASDAQ:ERIE) has a market capitalization of $3.45 billion. The company employs 4,400 people, generates revenue of $5.512 billion and has a net income of $619.00 million. Erie Indemnity’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.049 billion. The EBITDA margin is 37.17 percent (the operating margin is 16.31 percent and the net profit margin 11.23 percent).
Financial Analysis: The total debt represents 0.00 percent of Erie Indemnity’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 22.49 percent was realized by Erie Indemnity. Twelve trailing months earnings per share reached a value of $3.05. Last fiscal year, Erie Indemnity paid $4.25 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.21, the P/S ratio is 0.63 and the P/B ratio is finally 5.42. The dividend yield amounts to 3.19 percent and the beta ratio has a value of 0.63.
| Long-Term Stock Price Chart Of Erie Indemnity (ERIE) |
| Long-Term Dividend Payment History of Erie Indemnity (ERIE) |
| Long-Term Dividend Yield History of Erie Indemnity (ERIE) |
