My 3 Favorite Services Dividend Stocks with Cheap Forward Price Ratios

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May 08, 2013
Today I resume my monthly screen series of the cheapest dividend stocks. Now the services sector is subject of my analysis. A high dividend is not the solution for a return. The valuation also matters.

Because of the high amount of results, I observed only large-cap stocks. The top 20 results are valuated between 9.75 and 13.41. Two of the results have a yield over 3 percent and 14 are currently recommended to buy.

Here are my favorite stocks:

Time Warner Cable (TWC) has a market capitalization of $28.83 billion. The company employs 47,300 people, generates revenue of $21.386 billion and has a net income of $2.159 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.709 billion. The EBITDA margin is 36.05 percent (the operating margin is 20.78 percent and the net profit margin 10.10 percent).

Financial Analysis: The total debt represents 53.58 percent of the company’s assets and the total debt in relation to the equity amounts to 366.66 percent. Due to the financial situation, a return on equity of 29.10 percent was realized. Twelve trailing months earnings per share reached a value of $6.88. Last fiscal year, the company paid $2.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.18, the P/S ratio is 1.31 and the P/B ratio is finally 3.94. The dividend yield amounts to 2.70 percent and the beta ratio has a value of 0.75.

CSX Corporation (CSX) has a market capitalization of $25.89 billion. The company employs 32,000 people, generates revenue of $11.756 billion and has a net income of $1.859 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.516 billion. The EBITDA margin is 38.41 percent (the operating margin is 29.41 percent and the net profit margin 15.81 percent).

Financial Analysis: The total debt represents 32.16 percent of the company’s assets and the total debt in relation to the equity amounts to 109.39 percent. Due to the financial situation, a return on equity of 21.32 percent was realized. Twelve trailing months earnings per share reached a value of $1.81. Last fiscal year, the company paid $0.54 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.01, the P/S ratio is 2.19 and the P/B ratio is finally 2.86. The dividend yield amounts to 2.38 percent and the beta ratio has a value of 1.32.

Wal-Mart Stores (WMT) has a market capitalization of $261.24 billion. The company employs 2,200,000 people, generates revenue of $469.162 billion and has a net income of $17.756 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36.302 billion. The EBITDA margin is 7.74 percent (the operating margin is 5.93 percent and the net profit margin 3.78 percent).

Financial Analysis: The total debt represents 26.65 percent of the company’s assets and the total debt in relation to the equity amounts to 70.91 percent. Due to the financial situation, a return on equity of 23.02 percent was realized. Twelve trailing months earnings per share reached a value of $5.02. Last fiscal year, the company paid $1.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.70, the P/S ratio is 0.55 and the P/B ratio is finally 3.42. The dividend yield amounts to 2.38 percent and the beta ratio has a value of 0.34.

Take a closer look at the full list of the cheapest services dividend stocks. The average P/E ratio amounts to 15.25 and forward P/E ratio is 11.66. The dividend yield has a value of 2.08 percent. Price to book ratio is 3.28 and price to sales ratio 1.19. The operating margin amounts to 12.59 percent and the beta ratio is 1.06. Stocks from the list have an average debt to equity ratio of 0.87.

Related stock ticker symbols:

VMED, MGA, KSS, M, KR, LUV, WPPGY, NSC, ENL, VIAB, CSX, TWC, TGT, CAH, RUK, CVS, FDX, GPS, WAG, WMT

Selected Articles:

· The Safest Dividend Stocks From The Services Sector With Top Yields

· Dividend Stocks From The Services Sector With Highest Expected Growth

· Best Services Stock Picks For 2013 | A Selection Of Growth Stocks

· The 20 Biggest Dividend Stocks Within The Service Sector



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Dividend stocks from the services sector with very low forward P/E ratios originally published at long-term-investments.blogspot.com.