Cheapest Dividend Paying Large Caps as of August 2013

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Aug 23, 2013
Dividend stocks with great looking fundamentals and cheap price ratios can promise you a good return but they are also very rare and hard to find in my view. The higher your efforts of your screen are, the lower the number of results you get.

Today I would like to update my monthly screen about the cheapest dividend paying stocks on the capital market. I use six very strong criteria and only around a dozen companies remain each month.

My criteria for the cheap large cap screen are:



- Market capitalization over USD10 billion.

- Expected earnings per share growth over 10 percent for the next year.

- P/E ratio under 15.

- P/S and P/B ratio under 2.

- Positive dividends.

Twelve companies fulfilled the above mentioned criteria and 10 of them have a current buy or better rating. One stock has a high yield (5 percent dividend yield or more). To buy cheap stocks is no guarantee for a return but you get value for what you pay and the possibility to overpay a stock is also low if the business model is stable.



Here are the highest yielding results in detail:



BP (BP)
has a market capitalization of $128.88 billion. The company employs 85,700 people, generates revenue of $388.285 billion and has a net income of $11.816 billion. BP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $39.891 billion. The EBITDA margin is 10.27 percent (the operating margin is 5.08 percent and the net profit margin 3.04 percent).

Financial Analysis: The total debt represents 16.26 percent of BP’s assets and the total debt in relation to the equity amounts to 41.21 percent. Due to the financial situation, a return on equity of 10.07 percent was realized by BP. Twelve trailing months earnings per share reached a value of $8.07. Last fiscal year, BP paid $1.98 in the form of dividends to shareholders. The earnings of BP are expected to grow by 13.77 percent for the next year and 5.0 percent for the upcoming five years. See the long-term dividend payment and yield history here.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.07, the P/S ratio is 0.33 and the P/B ratio is finally 1.10. The dividend yield amounts to 5.28 percent and the beta ratio has a value of 1.22.

Transocean (RIG) has a market capitalization of $16.64 billion. The company employs 18,400 people, generates revenue of $9.196 billion and has a net income of $816.00 million. Transocean’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.592 billion. The EBITDA margin is 39.06 percent (the operating margin is 17.21 percent and the net profit margin 8.87 percent).

Financial Analysis: The total debt represents 36.37 percent of Transocean’s assets and the total debt in relation to the equity amounts to 79.13 percent. Due to the financial situation, a return on equity of 5.15 percent was realized by Transocean. Twelve trailing months earnings per share reached a value of $4.58. Last fiscal year, Transocean paid no dividends to shareholders. The earnings of RIG are expected to grow by 37.51 percent for the next year and 26.09 percent for the upcoming five years. See the long-term dividend payment and yield history here.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.07, the P/S ratio is 1.81 and the P/B ratio is finally 1.05. The dividend yield amounts to 4.85 percent and the beta ratio has a value of 1.25.

Freeport-McMoRan Copper & Gold (FCX) has a market capitalization of $32.54 billion. The company employs 34,000 people, generates revenue of $18.010 billion and has a net income of $3.977 billion. Freeport-McMoRan Copper & Gold’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.927 billion. The EBITDA margin is 38.46 percent (the operating margin is 31.35 percent and the net profit margin 22.08 percent).

Financial Analysis: The total debt represents 9.95 percent of Freeport-McMoRan Copper & Gold’s assets and the total debt in relation to the equity amounts to 20.10 percent. Due to the financial situation, a return on equity of 18.33 percent was realized by Freeport-McMoRan Copper & Gold. Twelve trailing months earnings per share reached a value of $2.81. Last fiscal year, Freeport-McMoRan Copper & Gold paid $1.25 in the form of dividends to shareholders. The earnings of FCX are expected to grow by 30.49 percent for the next year and 7.60 percent for the upcoming five years. See the long-term dividend payment and yield history here.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.15, the P/S ratio is 1.81 and the P/B ratio is finally 1.70. The dividend yield amounts to 3.99 percent and the beta ratio has a value of 1.98.

Take a look at the full list of cheap large capitalized stocks with highest expected earnings per share growth. The average P/E ratio amounts to 11.16 while the forward P/E ratio is 9.17. P/S ratio is 0.78 and P/B ratio 1.25. The expected earnings growth for next year amounts to 20.57 and 10.20 percent for the upcoming five years.

Related stock ticker symbols:

BP, RIG, FCX, NTT, PKX, PTR, ENI, VLO, MUR, MGA, NOV, TSN

Selected Articles:

· 17 Cheap Dividend Contenders With Buy Ratings And Double-Digit Growth

· 15 Cheap International Dividend Achievers

· Best Dividend Paying Stock List As Of August 2013

· 11 Cheap Stocks From The High-Yield Equity Dividend Achievers Index

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