50 Stocks with Fastest Dividend Growth in January 2013

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Jan 30, 2013
Dividend growth is one of the biggest wealth drivers. If you buy a stock with a 2 percent yield you might know that this can’t help you. You are right especially when you have invested only $1,000, your dividend income would only $20. That's not much when you consider that you have around $10 trading costs.

Dividend growth helps you to grow your passive income. Normally, a solid stock should double its dividend payments over 10 years. This means that your yield on cost would rise to 4 percent.

I often had stocks in my portfolio that beat these growth rates. Sure they were more risky than stocks like Procter & Gamble or Coca-Cola, but they all had a margin of safety for me. My yield on cost was after five years over 10 percent.

Today I would like to show you the 50 fastest dividend growth stocks from the last 30 days. There are some pretty good stocks with very good growth rates which indicate a strong business health. The average dividend growth of the 50 best stocks amounts to 68.40 percent. Remember, if you have such stocks, your yield on cost goes up over 10 percent in less than two years!

I personally have no stocks from the list. I don’t know why. Maybe there are too many financial and oil stocks on the list. More than half of the results have a current buy or better rating.

Here are the stocks with fast dividend growth:

Realty Income (O) has a market capitalization of $5.81 billion. The company employs 92 people, generates revenue of $421.06 million and has a net income of $151.14 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $383.44 million. The EBITDA margin is 91.07 percent (the operating margin is 36.24 percent and the net profit margin 35.89 percent).

Financial Analysis: The total debt represents 46.50 percent of the company’s assets and the total debt in relation to the equity amounts to 91.14 percent. Due to the financial situation, a return on equity of 7.41 percent was realized. Twelve trailing months earnings per share reached a value of $0.85. Last fiscal year, the company paid $1.74 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: Th e P/E ratio is 51.20, the P/S ratio is 13.99 and the P/B ratio is finally 3.07. The dividend yield amounts to 4.92 percent and the beta ratio has a value of 0.76.

Wells Fargo (WFC) has a market capitalization of $185.74 billion. The company employs 265,000 people, generates revenue of $48.391 billion and has a net income of $19.368 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $33.579 billion. The EBITDA margin is 69.39 percent (the operating margin is 33.07 percent and the net profit margin 22.50 percent).

Financial Analysis: The total debt represents 12.97 percent of the company’s assets and the total debt in relation to the equity amounts to 117.14 percent. Due to the financial situation, a return on equity of 13.16 percent was realized. Twelve trailing months earnings per share reached a value of $3.36. Last fiscal year, the company paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.48, the P/S ratio is 2.15 and the P/B ratio is finally 1.28. The dividend yield amounts to 2.85 percent and the beta ratio has a value of 1.40.

Schlumberger (SLB) has a market capitalization of $106.14 billion. The company employs 113,000 people, generates revenue of $42.321 billion and has a net income of $5.468 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11.031 billion. The EBITDA margin is 26.07 percent (the operating margin is 16.99 percent and the net profit margin 12.92 percent).

Financial Analysis: The total debt represents 18.90 percent of the company’s assets and the total debt in relation to the equity amounts to 33.36 percent. Due to the financial situation, a return on equity of 16.45 percent was realized. Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, the company paid $1.10 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.70, the P/S ratio is 2.49 and the P/B ratio is finally 3.02. The dividend yield amounts to 1.58 percent and the beta ratio has a value of 1.38.

Agilent Technologies (A) has a market capitalization of $15.53 billion. The company employs 20,500 people, generates revenue of $6.858 billion and has a net income of $1.153 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.426 billion. The EBITDA margin is 20.79 percent (the operating margin is 16.32 percent and the net profit margin 16.81 percent).

Financial Analysis: The total debt represents 22.42 percent of the company’s assets and the total debt in relation to the equity amounts to 45.58 percent. Due to the financial situation, a return on equity of 24.30 percent was realized. Twelve trailing months earnings per share reached a value of $3.27. Last fiscal year, the company paid $0.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.67, the P/S ratio is 2.29 and the P/B ratio is finally 3.02. The dividend yield amounts to 1.06 percent and the beta ratio has a value of 1.53.

Take a closer look at the full list of the 50 top stocks with fastest dividend growth from last month. The average P/E ratio amounts to 17.21. The dividend yield has a value of 2.86 percent. Price to book ratio is 3.65 and price to sales ratio 3.50.

Related Stock Ticker:

AGCO, BPFH, FHN, TSBK, GEO, RF, A, HCLP, MSFG, DFSB, SJT, AYT, WNR, COBZ, EWBC, MPX, FABK, PROV, MLHR, MOFG, BPT, FCCO, RES, SONA, MTR,A, AUNZ, O, FINL, MDH, CLP, SXL, BBT, VLO, PCBK, ATR, WFC, SLB, WEC, CMA, ROL, ANCX, BLK, ARP, MBWM, COLB, ONB, DCI, ATLS, KSU, HGT

Selected Articles:

· 18 Growth Stock Ideas From The Booming Emerging Markets

· 13 Dividend Growth Potentials With Really Cheap Price Ratios

· Cheap Dividend Champions | 20 Stocks With Highest Growth At Low Valuation

· 10 Of The Best Performing Growth Stocks From The Past Decade

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Shares with highest dividend growth from last month by Dividend Yield – Stock, Capital, Investment.