Best Dividend Paying Stock Lists By Dividend Yield – Stock, Capital, Investment. At the beginning of each month I screen the market with my best dividend paying stock screening criteria which are listed below.
I believe that it makes sense to observe the market by good valuated long-term growth stocks. For sure many of the results are lucky strikes, companies that have had an extraordinary good financial strength and growth due to a fantastic business environment. But the developments are not sustainable.
But sometimes there are new ideas on my list like Herbalife Ltd. (NYSE:HLF) or recently the weapon maker Sturm & Ruger. Those were corporate stocks in special situations with a huge army of short sellers lead by investment guru’s like Bill Ackman.
The best dividend paying stock list is a small compilation with seven tough investing criteria, summarized below. The list includes each month around 20 to 30 results. It’s a quick dividend list (from low-yield to high-yield paying stocks) of stocks with interesting performance and valuation figures. Stocks from that list are mid- and large caps (market capitalization of more than USD 1 billion) with double-digit long-term earnings growth rates. The companies are traded at AMEX, NYSE, NASDAQ and part of the Dow Jones, S&P 500 or Nasdaq Composite. The list is selected by the following criteria and sorted by dividend yield.
My Criteria to find the best dividend stock on the market
Market Capitalization: > 1 Billion
Price/Earnings Ratio: > 0 < 100
Dividend Yield: > 3 < 20
Return on Investment: > 10 < 100
Operating Margin: > 10 < 100
10 Year Revenue Growth: > 8 < 200
10 Year EPS Growth: > 10 < 100
28 companies are part of the best dividend paying stock list for October 2013. The top pick is still Southern Copper, a commodity based stock with a double-digit dividend yield. 8 additional stocks have a dividend yield over 5 percent and fourteen got a buy or better rating by brokerage firms.
Here are the 4 results with Low P/E’s at earnings growth expectations of more than 10 percent:
China Mobile Ltd. (ADR) (NYSE:CHL) has a market capitalization of $226.85 billion. The company employs 188,000 people, generates revenue of $91.585 billion and has a net income of $21.144 billion. China Mobile’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41.55 billion. The EBITDA margin is 45.37 percent (the operating margin is 26.86 percent and the net profit margin 23.09 percent).
Financial Analysis: The total debt represents 0.48 percent of China Mobile’s assets and the total debt in relation to the equity amounts to 0.70 percent. Due to the financial situation, a return on equity of 18.84 percent was realized by China Mobile. Twelve trailing months earnings per share reached a value of $5.23. Last fiscal year, China Mobile paid $2.79 in the form of dividends to shareholders. Forward P/E: 11.32 at 5-Year earnings forecasts of 24.30 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.79, the P/S ratio is 2.50 and the P/B ratio is finally 1.92. The dividend yield amounts to 3.96 percent and the beta ratio has a value of 0.30.
Vale SA (ADR) (NYSE:VALE) has a market capitalization of $80.44 billion. The company employs 70,785 people, generates revenue of $47.694 billion and has a net income of $6.255 billion. Vale’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18.892 billion. The EBITDA margin is 39.61 percent (the operating margin is 19.34 percent and the net profit margin 13.11 percent).
Financial Analysis: The total debt represents 24.49 percent of Vale’s assets and the total debt in relation to the equity amounts to 43.37 percent. Due to the financial situation, a return on equity of 9.33 percent was realized by Vale. Twelve trailing months earnings per share reached a value of $0.81. Last fiscal year, Vale paid $1.15 in the form of dividends to shareholders. Forward P/E: 7.72 at 5-Year earnings forecasts of 17.24 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.21, the P/S ratio is 1.74 and the P/B ratio is finally 1.11. The dividend yield amounts to 5.10 percent and the beta ratio has a value of 1.37.
Southern Copper Corp (NYSE:SCCO) has a market capitalization of $22.94 billion. The company employs 12,085 people, generates revenue of $6.669 billion and has a net income of $1.892 billion. Southern Copper’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.753 billion. The EBITDA margin is 56.27 percent (the operating margin is 46.62 percent and the net profit margin 28.38 percent).
Financial Analysis: The total debt represents 40.58 percent of Southern Copper’s assets and the total debt in relation to the equity amounts to 88.43 percent. Due to the financial situation, a return on equity of 44.07 percent was realized by Southern Copper. Twelve trailing months earnings per share reached a value of $1.91. Last fiscal year, Southern Copper paid $4.06 in the form of dividends to shareholders. Forward P/E: 14.22 at 5-Year earnings forecasts of 12.50 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.25, the P/S ratio is 3.52 and the P/B ratio is finally 4.97. The dividend yield amounts to 11.82 percent and the beta ratio has a value of 0.67.
Alliance Resource Partners, L.P. (NASDAQ:ARLP) has a market capitalization of $2.74 billion. The company employs 4,345 people, generates revenue of $2.034 billion and has a net income of $335.57 million. Alliance Resource Partner’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $611.63 million. The EBITDA margin is 30.07 percent (the operating margin is 18.41 percent and the net profit margin 16.50 percent).
Financial Analysis: The total debt represents 41.44 percent of Alliance Resource Partner’s assets and the total debt in relation to the equity amounts to 114.91 percent. Due to the financial situation, a return on equity of 23.99 percent was realized by Alliance Resource Partners. Twelve trailing months earnings per share reached a value of $6.67. Last fiscal year, Alliance Resource Partners paid $4.16 in the form of dividends to shareholders. Forward P/E: 10.41 at 5-Year earnings forecasts of 14.78 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.11, the P/S ratio is 1.39 and the P/B ratio is finally 2.87. The dividend yield amounts to 6.05 percent and the beta ratio has a value of 0.77.
Take a closer look at the full table of the best dividend paying stocks. The average price to earnings ratio (P/E ratio) amounts to 16.42 while the dividend yield has a value of 4.82 percent. Price to book ratio is 3.52 and price to sales ratio 2.93. The operating margin amounts to 26.96 percent. The earnings per share grew by 18.55 yearly over the past decade and sales by 20.02 percent.
Disclosure:
I’m Long CHL. I do not plan to change the position or buy/sell obligation on the stock within the next 72 hours.
