People love dividends and dividend growth stocks. That's why I make a list of companies every week that have announced a dividend increase within the recent week. In total, 23 stocks and funds raised dividends of which 11 have a dividend growth of more than 10 percent. The average dividend growth amounts to 53.7 percent. Below the results are seven high-yields and 10 companies are currently recommended to buy.
I personally own Becton Dickinson & Co. (BDX, Financial), which I purchased with two additional stocks from the industry a few years ago. Stocks from the medical instruments and supplies industry looked cheap during that time. Becton and the others were experiencing bad times and they were traded at a P/E ratio of around 10 to 12 while earnings were forecasted to grow by double-digit rates for the mid-term. As we can see, they still raised dividends despite the uncertain economic environment. Not enough, they increased dividends by a rate of more than 10 percent! So my BDX position is not big. It represents only 0.7 percent of my full stock portfolio.
Here are my favorite dividend growth stocks:
York Water (YORW) has a market capitalization of $221.47 million. The company employs 106 people, generates revenue of $40.63 million and has a net income of $9.08 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.78 million. The EBITDA margin is 60.99 percent (the operating margin is 48.92 percent and the net profit margin is 22.36 percent).
Financial Analysis: The total debt represents 31 percent of the company’s assets and the total debt in relation to the equity amounts to 89.24 percent. Due to the financial situation, a return on equity of 9.74 percent was realized. Twelve trailing months earnings per share reached a value of $0.70. Last fiscal year, the company paid $0.53 in the form of dividends to shareholders. The company announced to raise dividends by 3.5 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.4, the P/S ratio is 5.45 and the P/B ratio is 2.31. The dividend yield amounts to 3.22 percent and the beta ratio has a value of 0.46.
Hormel Foods (HRL, Financial) has a market capitalization of $8.05 billion. The company employs 19,700 people, generates revenue of $8.23 billion and has a net income of $504.96 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $845.48 million. The EBITDA margin is 10.27 percent (the operating margin is 9.29 percent and the net profit margin is 6.14 percent).
Financial Analysis: The total debt represents 5.48 percent of the company’s assets and the total debt in relation to the equity amounts to 8.85 percent. Due to the financial situation, a return on equity of 18.24 percent was realized. Twelve trailing months earnings per share reached a value of $1.86. Last fiscal year, the company paid $0.60 in the form of dividends to shareholders. The company announced to raise dividends by 13.3 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.48, the P/S ratio is 0.98 and the P/B ratio is 2.85. The dividend yield amounts to 2.22 percent and the beta ratio has a value of 0.45.
Quest Diagnostics (DGX) has a market capitalization of $9.22 billion. The company employs 42,000 people, generates revenue of $7.51 billion and has a net income of $507.23 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.278 billion. The EBITDA margin is 17.02 percent (the operating margin is 13.25 percent and the net profit margin is 6.75 percent).
Financial Analysis: The total debt represents 43.22 percent of the company’s assets and the total debt in relation to the equity amounts to 108.99 percent. Due to the financial situation, a return on equity of 12.15 percent was realized. Twelve trailing months earnings per share reached a value of $4.30. Last fiscal year, the company paid $0.47 in the form of dividends to shareholders. The company announced to raise dividends by 76.5 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.50, the P/S ratio is 1.23 and the P/B ratio is finally 2.47. The dividend yield amounts to 2.07 percent and the beta ratio has a value of 0.66.
Take a closer look at the full table of stocks with recent dividend hikes. The average dividend growth amounts to 53.7 percent and the average dividend yield amounts to 4.62 percent. Stocks from the sheet are valuated with a P/E ratio of 20.57. The average P/S ratio is 7.11 and the P/B is 2.83.
I personally own Becton Dickinson & Co. (BDX, Financial), which I purchased with two additional stocks from the industry a few years ago. Stocks from the medical instruments and supplies industry looked cheap during that time. Becton and the others were experiencing bad times and they were traded at a P/E ratio of around 10 to 12 while earnings were forecasted to grow by double-digit rates for the mid-term. As we can see, they still raised dividends despite the uncertain economic environment. Not enough, they increased dividends by a rate of more than 10 percent! So my BDX position is not big. It represents only 0.7 percent of my full stock portfolio.
Here are my favorite dividend growth stocks:
York Water (YORW) has a market capitalization of $221.47 million. The company employs 106 people, generates revenue of $40.63 million and has a net income of $9.08 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.78 million. The EBITDA margin is 60.99 percent (the operating margin is 48.92 percent and the net profit margin is 22.36 percent).
Financial Analysis: The total debt represents 31 percent of the company’s assets and the total debt in relation to the equity amounts to 89.24 percent. Due to the financial situation, a return on equity of 9.74 percent was realized. Twelve trailing months earnings per share reached a value of $0.70. Last fiscal year, the company paid $0.53 in the form of dividends to shareholders. The company announced to raise dividends by 3.5 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.4, the P/S ratio is 5.45 and the P/B ratio is 2.31. The dividend yield amounts to 3.22 percent and the beta ratio has a value of 0.46.
Hormel Foods (HRL, Financial) has a market capitalization of $8.05 billion. The company employs 19,700 people, generates revenue of $8.23 billion and has a net income of $504.96 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $845.48 million. The EBITDA margin is 10.27 percent (the operating margin is 9.29 percent and the net profit margin is 6.14 percent).
Financial Analysis: The total debt represents 5.48 percent of the company’s assets and the total debt in relation to the equity amounts to 8.85 percent. Due to the financial situation, a return on equity of 18.24 percent was realized. Twelve trailing months earnings per share reached a value of $1.86. Last fiscal year, the company paid $0.60 in the form of dividends to shareholders. The company announced to raise dividends by 13.3 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.48, the P/S ratio is 0.98 and the P/B ratio is 2.85. The dividend yield amounts to 2.22 percent and the beta ratio has a value of 0.45.
Quest Diagnostics (DGX) has a market capitalization of $9.22 billion. The company employs 42,000 people, generates revenue of $7.51 billion and has a net income of $507.23 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.278 billion. The EBITDA margin is 17.02 percent (the operating margin is 13.25 percent and the net profit margin is 6.75 percent).
Financial Analysis: The total debt represents 43.22 percent of the company’s assets and the total debt in relation to the equity amounts to 108.99 percent. Due to the financial situation, a return on equity of 12.15 percent was realized. Twelve trailing months earnings per share reached a value of $4.30. Last fiscal year, the company paid $0.47 in the form of dividends to shareholders. The company announced to raise dividends by 76.5 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.50, the P/S ratio is 1.23 and the P/B ratio is finally 2.47. The dividend yield amounts to 2.07 percent and the beta ratio has a value of 0.66.
Take a closer look at the full table of stocks with recent dividend hikes. The average dividend growth amounts to 53.7 percent and the average dividend yield amounts to 4.62 percent. Stocks from the sheet are valuated with a P/E ratio of 20.57. The average P/S ratio is 7.11 and the P/B is 2.83.
