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I have searched for profitable companies that pay rich dividends and that raise their payouts by more than 13% each year. I have elaborated a screening method, which shows stock candidates following these lines. Nonetheless, the screening method should only serve as a basis for further research.

The screen's formula requires all stocks to comply with all following demands:

1. The stock is included in the S&P Composite 1500 index. Description from Standard & Poor's:

An investable U.S. equity benchmark, the S&P Composite 1500 combines three leading indices, the S&P 500®, the S&P MidCap 400, and the S&P SmallCap 600 to cover approximately 90% of the U.S. market capitalization. It is designed for investors seeking to replicate the performance of the U.S. equity market or benchmark against a representative universe of tradable stocks.

2. Dividend yield is greater than 2.2%.

3. The payout ratio is less than 80%.

4. The annual rate of dividend growth over the past five years is greater than 13%.

5. Trailing P/E is less than 21.

6. Forward P/E is less than 18.

After running this screen on February 22, 2013, before the market open, I discovered the following four stocks:

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The Clorox Company (NYSE:CLX)

The Clorox Company manufactures and markets consumer and professional products worldwide.

The Clorox Company has a trailing P/E of 19.25 and a forward P/E of 17.53. The average annual earnings growth estimates for the next five years is at 8.50%. The forward annual dividend yield is quite high at 3.11%, and the payout ratio is at 58.9%. The annual rate of dividend growth over the past five years was quite high at 13.3%.

The CLX stock price is 3.14% above its 20-day simple moving average, 7.39% above its 50-day simple moving average and 13.93% above its 200-day simple moving average, which indicates short-term, mid-term and long-term uptrend.

On February 04, The Clorox Company reported its fiscal 2013 second-quarter financial results, which beat EPS expectations by $0.10 and beat expectations on revenues. The company reported a 9 percent increase in sales and 18 percent growth in diluted earnings per share. Clorox also delivered one percentage point of gross margin improvement. In the report, Don Knauss, Chairman and CEO, said:

I'm extremely pleased with our second-quarter results. We had strong year-over-year sales growth, as well as another quarter of gross margin expansion, which is a testament to our focus on delivering profitable growth. Based on our 5 percent sales growth and 10 percent EPS growth in the first half of the fiscal year, we feel more optimistic about our full-year outlook.

The rich dividend, the strong dividend payments growth rate, the good second-quarter financial results, and the fact that the stock is in an uptrend are all factors that make CLX stock quite attractive.

CLX Dividend Chart

CLX Dividend data by YCharts

CLX Dividend Yield Chart

CLX Dividend Yield data by YCharts

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Chart: finviz.com

Occidental Petroleum Corporation (NYSE:OXY)

Occidental Petroleum Corporation engages in the exploration and production of oil and gas properties in the United States and internationally.

Occidental Petroleum has a very low debt (total debt to equity is only 0.19), and the trailing P/E is very low at 11.46 and the forward P/E is even lower at 10.66. The forward annual dividend yield is at 2.52%, and the payout ratio is only 29.7%. The annual rate of dividend growth over the past five years was very high at 18.1%.

On January 31, Occidental Petroleum reported its 2012 fourth-quarter financial results, which beat EPS expectations by $0.16 and beat expectations on revenues. The company announced core income of $1.5 billion ($1.83 per diluted share) for the fourth quarter of 2012, compared with $1.6 billion ($2.02 per diluted share) for the fourth quarter of 2011. In the fourth quarter of 2012, the company recorded after-tax charges of $1.1 billion or $1.41 per diluted share, almost all of which was related to the impairment of gas assets in the Midcontinent. In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said:

Our fourth quarter domestic production of 475,000 barrels of oil equivalent per day, of which 342,000 barrels per day was liquids, set a record for the ninth consecutive quarter. Our total company production for all of 2012 was 766,000 barrels of oil equivalent per day, which was 5 percent higher than 2011. Our domestic oil production grew by 11 percent for all of 2012 to 255,000 barrels per day from 230,000 barrels in 2011.

The cheap valuation metrics, the solid dividend, the strong dividend payments growth rate, and the good fourth-quarter results are all factors that make OXY stock quite attractive.

OXY Dividend Chart

OXY Dividend data by YCharts

OXY Dividend Yield Chart

OXY Dividend Yield data by YCharts

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Chart: finviz.com

UNS Energy Corporation (NYSE:UNS)

UNS Energy Corporation engages in the electric generation and energy delivery businesses.

UNS Energy has a trailing P/E of 20.57 and a forward P/E of 17.94. The average annual earnings growth estimates for the next five years is at 8.00%. The forward annual dividend yield is quite high at 3.72%, and the payout ratio is at 76.4%. The annual rate of dividend growth over the past five years was quite high at 14.9%.

The UNS stock price is 1.43% above its 20-day simple moving average, 4.95% above its 50-day simple moving average and 14.30% above its 200-day simple moving average, which indicates short-term, mid-term and long-term uptrend.

UNS Energy will report its latest quarterly financial results on February 25. UNS is expected to post a profit of $0.16 a share, a 27.2% decline from the company's actual earnings for the same quarter a year ago. The reported results will probably affect the stock price in the short term.

The rich dividend, the strong dividend payments growth rate, and the fact that the stock is in an uptrend are all factors that make UNS stock quite attractive.

UNS Dividend Chart

UNS Dividend data by YCharts

UNS Dividend Yield Chart

UNS Dividend Yield data by YCharts

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Chart: finviz.com

Wal-Mart Stores Inc. (NYSE:WMT)

Wal-Mart Stores, Inc. operates retail stores in various formats worldwide.

Wal-Mart Stores has a low trailing P/E of 14.46 and a very low forward P/E of 11.83. The PEG ratio is at 1.41, and the price-to-sale-ratio is very low at 0.51. The forward annual dividend yield is at 2.26%, and the payout ratio is only 32.7%. The annual rate of dividend growth over the past five years was quite high at 16.9%.

The WMT stock price is 0.06% above its 20-day simple moving average, 1.07% above its 50-day simple moving average and 0.26% above its 200-day simple moving average, which indicates short-term, mid-term and long-term uptrend. The company is trading 8.96% below its 52-week high and has 11.7% upside potential based on the consensus mean target price of $78.50

On February 21, Wal-Mart Stores reported its fiscal year 2013 fourth quarter financial results, which beat EPS expectations by $0.10 and missed slightly expectations on revenues. Net sales for the fourth quarter of fiscal 2013 were $127.1 billion, an increase of 3.9 percent from $122.3 billion in last year's fourth quarter. On a constant currency basis, net sales would have increased 3.7 percent to $126.8 billion. Membership and other income decreased 7.8 percent to $815 million, due to lower other income. Total revenue for the fourth quarter was $127.9 billion, a 3.9 percent increase over last year. In the report, Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer, said:

Walmart topped off a really good year with a solid fourth quarter, and I'm proud of what we accomplished as a team. Every day, our associates around the world deliver on our mission to help customers save money so they can live better. Together, we added $22 billion in sales to top $466 billion. Walmart U.S. was a key driver of our five percent net sales increase.

The cheap valuation metrics, the solid dividend, the strong dividend payments growth rate, the solid 2013 fourth-quarter financial results, and the fact that the stock is in an uptrend are all factors that make WMT stock quite attractive.

WMT Dividend Chart

WMT Dividend data by YCharts

WMT Dividend Yield Chart

WMT Dividend Yield data by YCharts

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Chart: finviz.com

Source: 4 Good-Yield Stocks That Have Increased Dividends By At Least 13% A Year For The Last 5 Years