My 3 Favorites From Last Week's Dividend Growth Stocks

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Jan 06, 2013
I love dividends and dividend growth stocks. That’s the main reason why I make a regular screen of the latest stocks with dividend growth on my blog long-term-investments.blogspot.com.

I believe that those companies could have well-running businesses and better performances in the long-run.

Below is a current list of companies that have announced a dividend increase within the recent week. In total, five stocks and funds raised dividends of which two have a dividend growth of more than 10 percent. The average dividend growth amounts to 17 percent.

Below the results is one high-yield stock from the closed-end debt industry. Three of the growth stocks have a current buy or better recommendation.

Here are my favorite dividend growth stocks:

Sovran Self Storage (SSS, Financial) has a market capitalization of $1.95 billion. The company employs 1,164 people, generates revenue of $211.16 million and has a net income of $31.53 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $105.53 million. The EBITDA margin is 49.98 percent (the operating margin is 32.65 percent and the net profit margin is 14.93 percent).

Financial Analysis: The total debt represents 46.51 percent of the company’s assets and the total debt in relation to the equity amounts to 95.41 percent. Due to the financial situation, a return on equity of 4.75 percent was realized. Twelve trailing months earnings per share reached a value of $1.57. Last fiscal year, the company paid $1.80 in the form of dividends to shareholders. SSS announced a hike of 6.7 percent last week.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 40.84, the P/S ratio is 9.25 and the P/B ratio is 2.83. The dividend yield amounts to 2.99 percent and the beta ratio has a value of 1.06.

Cal-Maine Foods (CALM, Financial) has a market capitalization of $981.49 million. The company employs 2,175 people, generates revenue of $1,113.12 million and has a net income of $89.97 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $119.02 million. The EBITDA margin is 10.69 percent (the operating margin is 7.96 percent and the net profit margin is 8.08 percent).

Financial Analysis: The total debt represents 10.49 percent of the company’s assets and the total debt in relation to the equity amounts to 15.91 percent. Due to the financial situation, a return on equity of 19.98 percent was realized. Twelve trailing months earnings per share reached a value of $4.01. Last fiscal year, the company paid $1.25 in the form of dividends to shareholders. CALM announced a hike of 53.1 percent last week.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.23, the P/S ratio is 0.88 and the P/B ratio is 2.05. The dividend yield amounts to 2.96 percent and the beta ratio has a value of 0.50.

Alamo Group (ALG, Financial) has a market capitalization of $414.47 million. The company employs 2,500 people, generates revenue of $603.59 million and has a net income of $32.07 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.00 million. The EBITDA margin is 9.78 percent (the operating margin is 8.05 percent and the net profit margin is 5.31 percent).

Financial Analysis: The total debt represents 2.58 percent of the company’s assets and the total debt in relation to the equity amounts to 3.55 percent. Due to the financial situation, a return on equity of 12.10 percent was realized. Twelve trailing months earnings per share reached a value of $2.67. Last fiscal year, the company paid $0.24 in the form of dividends to shareholders. ALG announced a hike of 16.7 percent last week.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.97, the P/S ratio is 0.69 and the P/B ratio is 1.48. The dividend yield amounts to 0.81 percent and the beta ratio has a value of 1.27.

Take a closer look at the full table of stocks with recent dividend hikes. The average dividend growth amounts to 17.0 percent and the average dividend yield amounts to 3.60 percent. Stocks from the sheet are valuated with a P/E ratio of 16.08.The average P/S ratio is 3.20 and P/B 1.71.

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