10 Most Profitable Dividend Challengers

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Jun 15, 2012
Dividend Challengers With Highest Return On Investment Researched By Dividend Yield - Stock, Capital, Investment. Dividend Challengers are stocks with a history of rising dividend of more than five years in a row but less than 10 years. Stocks with such a long dividend growth history have a high reliability ,but which one are currently the best in terms of profitability?


I screened the 189 Dividend Challengers by the highest return on investment (ROI) and observed only the stocks with the highest figures. Ten companies have currently the highest ROI of more than 25 percent.


Here are my favorite stocks:


Microsoft Corporation (MSFT, Financial) has a market capitalization of $246.48 billion. The company employs 90,000 people, generates revenues of $69,943.00 million and has a net income of $23,150.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29,927.00 million. Because of these figures, the EBITDA margin is 42.79 percent (operating margin 38.83 percent and the net profit margin finally 33.10 percent).


Financial Analysis: The total debt representing 10.97 percent of the company’s assets and the total debt in relation to the equity amounts to 20.88 percent. Due to the financial situation, a return on equity of 44.84 percent was realized. Twelve trailing months earnings per share reached a value of $2.75. Last fiscal year, the company paid $0.64 in form of dividends to shareholders. The company raised dividends over a period of 7 consecutive years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.67, P/S ratio 3.50 and P/B ratio 4.27. Dividend Yield: 2.75 percent. The beta ratio is 1.01.


Accenture (ACN, Financial) has a market capitalization of $40.00 billion. The company employs 244,000 people, generates revenues of $27,352.91 million and has a net income of $2,553.24 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,983.71 million. Because of these figures, the EBITDA margin is 14.56 percent (operating margin 12.69 percent and the net profit margin finally 9.33 percent).


Financial Analysis: The total debt representing 0.03 percent of the company’s assets and the total debt in relation to the equity amounts to 0.11 percent. Due to the financial situation, a return on equity of 67.84 percent was realized. Twelve trailing months earnings per share reached a value of $3.77. Last fiscal year, the company paid $0.90 in form of dividends to shareholders. The company raised dividends over a period of 6 consecutive years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.34, P/S ratio 1.47 and P/B ratio 10.14. Dividend Yield: 2.37 percent. The beta ratio is 0.84.


Cummins (CMI, Financial) has a market capitalization of $17.90 billion. The company employs 43,900 people, generates revenues of $18,048.00 million and has a net income of $1,946.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,586.00 million. Because of these figures, the EBITDA margin is 14.33 percent (operating margin 14.85 percent and the net profit margin finally 10.78 percent).


Financial Analysis: The total debt representing 5.88 percent of the company’s assets and the total debt in relation to the equity amounts to 12.49 percent. Due to the financial situation, a return on equity of 36.37 percent was realized. Twelve trailing months earnings per share reached a value of $10.19. Last fiscal year, the company paid $1.32 in form of dividends to shareholders. The company raised dividends over a period of 6 consecutive years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.14, P/S ratio 1.00 and P/B ratio 3.27. Dividend Yield: 1.71 percent. The beta ratio is 2.00.


Take a closer look at the full table of the most profitable Dividend Challengers. The average P/E ratio amounts to 15.29 and forward P/E ratio is 12.92. The dividend yield has a value of 2.77 percent. Price to book ratio is 10.44 and price to sales ratio 3.40. The operating margin amounts to 30.77 percent and the beta ratio is 0.99. The average stock has a ROI of 45.66 percent.


Related stock ticker symbols:

AHGP, LO, STRA, MSFT, ACN, DNB, CMI, EPHC, LSTR, TPL


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