My 4 Favorite Stocks With Dividend Growth From Last Week

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May 05, 2013
Last week was an interesting one because some of the big players announced a dividend hike, in line with the expectations of the market. They are still continuing long-term dividend growth. Below the results are: PepsiCo Inc., Airgas Inc., International Business Machines Corp. and American Express Co.

In total, 60 shares and six ETFs announced a hike, on average a 30.05% increase. Eleven of them pay high yields; 37 have a current buy or better recommendation.

The markets are at all-time-highs and nobody is scared about this. I hate it when stocks are getting more expensive and yields go rapidly down because I must limit my stock purchases. In such an environment, a dividend growth investor can’t build values when a slow-growing stock pays a 1.5% yield - a value similar to the bond market yields. Let’s hope that earnings and sales grow in the same amount.

Here are my favorite dividend growth stocks:

PepsiCo Inc. (PEP) has a market capitalization of $128.09 billion. The company employs 278,000 people, generates revenue of $65.492 billion and has a net income of $6.214 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11.920 billion. The EBITDA margin is 18.20% (the operating margin is 13.91% and the net profit margin is 9.49%).

Financial Analysis: The total debt represents 38% of the company’s assets and the total debt in relation to the equity amounts to 127.20%. Due to the financial situation, a return on equity of 28.62% was realized. Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, the company paid $2.13 in the form of dividends to shareholders. PEP announced to raise its dividend by 5.6%.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.23, the P/S ratio is 1.96 and the P/B ratio is 5.71. The dividend yield amounts to 2.74% and the beta ratio has a value of 0.50.

Airgas Inc. (ARG) has a market capitalization of $7.41 billion. The company employs 15,000 people, generates revenue of $4.746 billion and has a net income of $313.37 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $823.91 million. The EBITDA margin is 17.36% (the operating margin is 11.66% and the net profit margin is 6.60%).

Financial Analysis: The total debt represents 41.97% of the company’s assets and the total debt in relation to the equity amounts to 127.59%. Due to the financial situation, a return on equity of 17.95% was realized. Twelve trailing months earnings per share reached a value of $4.35. Last fiscal year, the company paid $1.25 in the form of dividends to shareholders. ARG announced to raise its dividend by 20%.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.25, the P/S ratio is 1.55 and the P/B ratio is 4.24. The dividend yield amounts to 1.98% and the beta ratio has a value of 1.02.

International Business Machines Corp. (IBM) has a market capitalization of $226.76 billion. The company employs 434,246 people, generates revenue of $104.507 billion and has a net income of $16.604 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26.394 billion. The EBITDA margin is 25.26% (the operating margin is 20.96% and the net profit margin is15.89%).

Financial Analysis: The total debt represents 27.91% of the company’s assets and the total debt in relation to the equity amounts to 176.40%. Due to the financial situation, a return on equity of 85.15% was realized. Twelve trailing months earnings per share reached a value of $14.50. Last fiscal year, the company paid $3.30 in the form of dividends to shareholders. IBM announced to raise its dividends by 11.8%.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.11, the P/S ratio is 2.17 and the P/B ratio is 12.12. The dividend yield amounts to 1.86% and the beta ratio has a value of 0.69.

American Express Co. (AXP) has a market capitalization of $77.16 billion. The company employs 62,400 people, generates revenue of $33.808 billion and has a net income of $4.482 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.442 billion. The EBITDA margin is 22.01% (the operating margin is 19.08% and the net profit margin is 13.26%).

Financial Analysis: The total debt represents 41.02% of the company’s assets and the total debt in relation to the equity amounts to 332.62%. Due to the financial situation, a return on equity of 23.53% was realized. Twelve trailing months earnings per share reached a value of $3.95. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders. AXP announced to raise its dividend by 15%.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.76, the P/S ratio is 2.28 and the P/B ratio is 4.11. The dividend yield amounts to 1.3% and the beta ratio has a value of 1.80.

Take a closer look at the full table of stocks with recent dividend hikes. The average dividend growth amounts to 30.05% and the average dividend yield amounts to 3.21%. Stocks from the sheet are valuated with a P/E ratio of

30.61. The average P/S ratio is 3.23 and the P/B is 3.30.

Stocks with dividend hikes from last week originally published at “long-term-investments.blogspot.com.”

Related Stock Ticker:

ACMP, ARG, AHGP, ARLP, ALDW, ACC, AXP, APU, ARTNA, CBD, COF, CAH, CPK, SID, COST, UAN, UFS, DTE, EBMT, EVF, EVEP, EXPD, EXLP, FMO, GMLP, ASR, GOF, HTGC, HEP, HBApG, IBM, IVZ, LAZ, MAN, MTRN , MGF, MIN, MFV, BKR, MCHP, MPLX, NHI, NHF, NRT, NRF, PEP, POOL, RBC, RLI, RKT, RDS.A, RDS.B, SDLP, SSW, SXE, SONA, SEP, RGR, SSBI, SU, TLK, TBNK, TSCO, UGI, VLO, VMI, VCO, WTS, WEYS

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