Dividend income investors seek a high income stream from dividends. In addition, capital gains from stocks trades are a welcome bonus for a long-term investor like me. Over a long period, such capital gains are much higher than the amount of dividends. I personally have a ratio of 1:2. This means for every dollar in dividends I could generate an additional two dollars of stock gains. Most of my capital gains are unrealized because I hold them for a very long time.
However, I started a new screen from the services sector. I wanted to know what stock picks could be the best for next year. Last year’s picks gained 31.16 percent while the sector was up 23.16 percent compared to the previous year.
These are my criteria:
- Forward P/E under 15
- Past five-year sales growth over 10 percent
- Earnings per share growth for the next five years over 10 percent
- Operating margin over 10 percent
- Market capitalization above USD2 billion
Fourteen stocks fulfilled these criteria of which eight pay dividends and twelve are currently recommended to buy. The results are dominated by business services stocks and discount, variety store concepts.
Here are the three best yielding stocks:
Guess? (GES) has a market capitalization of $2.10 billion. The company employs 14,300 people, generates revenue of $2.688 billion and has a net income of $270.65 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $476.52 million. The EBITDA margin is 17.73 percent (the operating margin is 14.78 percent and the net profit margin 10.07 percent).
Financial Analysis: The total debt represents 0.66 percent of the company’s assets and the total debt in relation to the equity amounts to 1.04 percent. Due to the financial situation, a return on equity of 23.62 percent was realized. Twelve trailing months earnings per share reached a value of $2.25. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.97, the P/S ratio is 0.78 and the P/B ratio is finally 1.88. The dividend yield amounts to 3.25 percent and the beta ratio has a value of 1.66.
Time Warner Cable (TWC) has a market capitalization of $28.36 billion. The company employs 47,300 people, generates revenue of $19.675 billion and has a net income of $1.67 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.1 billion. The EBITDA margin is 36.07 percent (the operating margin is 20.68 percent and the net profit margin 8.47 percent).
Financial Analysis: The total debt represents 55.39 percent of the company’s assets and the total debt in relation to the equity amounts to 355.14 percent. Due to the financial situation, a return on equity of 19.76 percent was realized. Twelve trailing months earnings per share reached a value of $6.94. Last fiscal year, the company paid $1.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.53, the P/S ratio is 1.44 and the P/B ratio is finally 3.93. The dividend yield amounts to 2.39 percent and the beta ratio has a value of 0.80.
Copa Holdings (CPA) has a market capitalization of $4.22 billion. The company employs 7,527 people, generates revenue of $1.830 billion and has a net income of $310.42 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $460.44 million. The EBITDA margin is 25.15 percent (the operating margin is 21.03 percent and the net profit margin 16.95 percent).
Financial Analysis: The total debt represents 34.83 percent of the company’s assets and the total debt in relation to the equity amounts to 76.84 percent. Due to the financial situation, a return on equity of 24.50 percent was realized. Twelve trailing months earnings per share reached a value of $7.76. Last fiscal year, the company paid $1.64 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.28, the P/S ratio is 2.28 and the P/B ratio is finally 3.00. The dividend yield amounts to 2.37 percent and the beta ratio has a value of 1.09.
Take a closer look at the full list of the best stock picks from the services sector for next year. The average P/E ratio amounts to 18.10 and forward P/E ratio is 11.08. The dividend yield has a value of 2.51 percent. Price to book ratio is 1.81 and price to sales ratio 2.90. The operating margin amounts to 24.97 percent. The average stock has a debt to equity ratio of 0.42.
Related stock ticker symbols:
GES, TWC, CPA, FMCN, FIS, TW, AAN, GPN, DG, DLTR, RYAAY, DTV, WXS, ADS
Selected Articles:
· 13 Best Dividend Paying Services Stocks
· The Best Yielding Large Cap Services Stocks
· The 20 Biggest Dividend Stocks Within The Service Sector
However, I started a new screen from the services sector. I wanted to know what stock picks could be the best for next year. Last year’s picks gained 31.16 percent while the sector was up 23.16 percent compared to the previous year.
These are my criteria:
- Forward P/E under 15
- Past five-year sales growth over 10 percent
- Earnings per share growth for the next five years over 10 percent
- Operating margin over 10 percent
- Market capitalization above USD2 billion
Fourteen stocks fulfilled these criteria of which eight pay dividends and twelve are currently recommended to buy. The results are dominated by business services stocks and discount, variety store concepts.
Here are the three best yielding stocks:
Guess? (GES) has a market capitalization of $2.10 billion. The company employs 14,300 people, generates revenue of $2.688 billion and has a net income of $270.65 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $476.52 million. The EBITDA margin is 17.73 percent (the operating margin is 14.78 percent and the net profit margin 10.07 percent).
Financial Analysis: The total debt represents 0.66 percent of the company’s assets and the total debt in relation to the equity amounts to 1.04 percent. Due to the financial situation, a return on equity of 23.62 percent was realized. Twelve trailing months earnings per share reached a value of $2.25. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.97, the P/S ratio is 0.78 and the P/B ratio is finally 1.88. The dividend yield amounts to 3.25 percent and the beta ratio has a value of 1.66.
Time Warner Cable (TWC) has a market capitalization of $28.36 billion. The company employs 47,300 people, generates revenue of $19.675 billion and has a net income of $1.67 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.1 billion. The EBITDA margin is 36.07 percent (the operating margin is 20.68 percent and the net profit margin 8.47 percent).
Financial Analysis: The total debt represents 55.39 percent of the company’s assets and the total debt in relation to the equity amounts to 355.14 percent. Due to the financial situation, a return on equity of 19.76 percent was realized. Twelve trailing months earnings per share reached a value of $6.94. Last fiscal year, the company paid $1.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.53, the P/S ratio is 1.44 and the P/B ratio is finally 3.93. The dividend yield amounts to 2.39 percent and the beta ratio has a value of 0.80.
Copa Holdings (CPA) has a market capitalization of $4.22 billion. The company employs 7,527 people, generates revenue of $1.830 billion and has a net income of $310.42 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $460.44 million. The EBITDA margin is 25.15 percent (the operating margin is 21.03 percent and the net profit margin 16.95 percent).
Financial Analysis: The total debt represents 34.83 percent of the company’s assets and the total debt in relation to the equity amounts to 76.84 percent. Due to the financial situation, a return on equity of 24.50 percent was realized. Twelve trailing months earnings per share reached a value of $7.76. Last fiscal year, the company paid $1.64 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.28, the P/S ratio is 2.28 and the P/B ratio is finally 3.00. The dividend yield amounts to 2.37 percent and the beta ratio has a value of 1.09.
Take a closer look at the full list of the best stock picks from the services sector for next year. The average P/E ratio amounts to 18.10 and forward P/E ratio is 11.08. The dividend yield has a value of 2.51 percent. Price to book ratio is 1.81 and price to sales ratio 2.90. The operating margin amounts to 24.97 percent. The average stock has a debt to equity ratio of 0.42.
Related stock ticker symbols:
GES, TWC, CPA, FMCN, FIS, TW, AAN, GPN, DG, DLTR, RYAAY, DTV, WXS, ADS
Selected Articles:
· 13 Best Dividend Paying Services Stocks
· The Best Yielding Large Cap Services Stocks
· The 20 Biggest Dividend Stocks Within The Service Sector
