My 4 Favorite Income Stocks with Biggest Earnings Growth

Author's Avatar
Mar 22, 2013
We all have a small problem if we have money to invest. The yields for high-quality stocks go rapidly down. It’s hard to find stocks with a dividend yield of more than 3 percent and a longer dividend growth history. Low yields can’t help you grow your wealth and protect your assets against inflation.

Today I started a screen of the most successful stocks in terms of earnings per share growth of the recent 10 years. I implemented a 4% barrier as well as a minimum market capitalization of at least USD1 billion.

Linked are the results of the highest growing long-term stocks with yields still above the 4% mark. Many oil and gas companies as well as mining stocks are in the below the results but in total they are well mixed.

Past performance does not guarantee a good future. Some of them had special economic situations and benefited from under capacities. Especially stocks from the commodity sector must be mentioned here. It’s very important to look at the future business environment and price developments of the underlying assets they produce and sell.

Here are my favorite stocks:

Southern Copper (SCCO) has a market capitalization of $30.31 billion. The company employs 12,145 people, generates revenue of $6.669 billion and has a net income of $1.892 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.434 billion. The EBITDA margin is 51.50 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 the company’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. Twelve trailing months earnings per share reached a value of $2.28. Last fiscal year, the company paid $4.06 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.73, the P/S ratio is 4.55 and the P/B ratio is finally 6.36. The dividend yield amounts to 10.48 percent and the beta ratio has a value of 1.59.

Baytex Energy (BTE) has a market capitalization of $5.19 billion. The company employs 159 people, generates revenue of $999.85 million and has a net income of $252.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $632.58 million. The EBITDA margin is 63.27 percent (the operating margin is 36.72 percent and the net profit margin 25.23 percent).

Financial Analysis: The total debt represents 21.97 percent of the company’s assets and the total debt in relation to the equity amounts to 42.91 percent. Due to the financial situation, a return on equity of 20.64 percent was realized. Twelve trailing months earnings per share reached a value of $2.08. Last fiscal year, the company paid $2.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.35, the P/S ratio is 5.18 and the P/B ratio is finally 4.07. The dividend yield amounts to 6.10 percent and the beta ratio has a value of 1.56.

Lockheed Martin (LMT) has a market capitalization of $29.57 billion. The company employs 120,000 people, generates revenue of $47.182 billion and has a net income of $2.745 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.355 billion. The EBITDA margin is 11.35 percent (the operating margin is 9.26 percent and the net profit margin 5.82 percent).

Financial Analysis: The total debt represents 16.32 percent of the company’s assets. Due to the high leverage, a return on equity of 527.88 percent was realized. Twelve trailing months earnings per share reached a value of $8.37. Last fiscal year, the company paid $4.15 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.95, the P/S ratio is 0.63 and the P/B ratio is finally 754.60. The dividend yield amounts to 5.02 percent and the beta ratio has a value of 0.94.

Intel Corporation (INTC) has a market capitalization of $104.06 billion. The company employs 105,000 people, generates revenue of $53,341.00 million and has a net income of $11,005.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22,160.00 million. The EBITDA margin is 41.54 percent (the operating margin is 27.44 percent and the net profit margin 20.63 percent).

Financial Analysis: The total debt represents 15.94 percent of the company’s assets and the total debt in relation to the equity amounts to 26.26 percent. Due to the financial situation, a return on equity of 22.66 percent was realized. Twelve trailing months earnings per share reached a value of $2.13. Last fiscal year, the company paid $0.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.88, the P/S ratio is 1.95 and the P/B ratio is finally 2.03. The dividend yield amounts to 4.28 percent and the beta ratio has a value of 1.02.

Take a closer look at the full list of high income stocks with biggest past growth. The average P/E ratio amounts to 14.51 and forward P/E ratio is 19.48. The dividend yield has a value of 5.60 percent. Price to book ratio is 4.05 and price to sales ratio 3.38. The operating margin amounts to 31.22 percent and the beta ratio is 1.08. Stocks from the list have an average debt to equity ratio of 1.27.

Related stock ticker symbols:

BPT, ARLP, TNH, BTE, GSK, YZC, EPB, NRGY, GEO, GRMN, ZNH, LMT, LTC, HEP, CM, EPD, TGH, STX, GME, COP

Selected Articles:

· 20 Dividend Contenders With High Growth And Cheap Price Ratios

· 20 Contenders With Highest Buy Rating

· High-Yield Income Investing With Dividend Contenders

· 13 High Quality Dividend Income Stocks

If you would like to receive more news and regular dividend updates, you should subscribe to my free E-Mail list. Alternatively, you can follow me onFacebookor Twitter.

Income stocks with highest earnings per share growth and yields over 4% originally published at long-term-investments.blogspot.com.