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Investing in stocks that combine solid and growing dividends, along with growing sales and earnings at a reasonable price, will reward the investor a nice income with a good chance of capital gain.

I have searched for profitable companies that pay rich dividends, that have raised their payouts significantly each year, and that have been able to grow sales, earnings and dividends by a double digit rate. Those stocks would also have to show very low debt.

I also looked for companies that are in a short-term, mid-term and long-term uptrend. Stocks in an uptrend are performing well and are in a buying mode.

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. All the data for this article was taken from Yahoo Finance and finviz.com.

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

  1. Dividend yield is greater than 2.2%.
  2. The payout ratio is less than 60%.
  3. The annual rate of dividend growth over the past five years is greater than 12%.
  4. The annual rate of dividend growth over the past 10 years is greater than 12%.
  5. Forward P/E is less than 17.
  6. Debt to equity is less or equal 0.50.
  7. Average annual sales growth for the past 5 years is greater than 12%.
  8. Average annual earnings growth for the past 5 years is greater than 12%.
  9. Average annual earnings growth estimates for the next 5 years is greater than 11%.
  10. Stock price is above 20-day simple moving average (short-term uptrend).
  11. Stock price is above 50-day simple moving average (mid-term uptrend).
  12. Stock price is above 200-day simple moving average (long-term uptrend).

After running this screen on April 14, 2013, I discovered the following three stocks:

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BlackRock, Inc. (NYSE:BLK)

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. BlackRock, Inc. has a very low debt (total debt to equity is only 0.32) and it has a trailing P/E of 19.14 and a low forward P/E of 14.72. The forward annual dividend yield is at 2.55%, and the payout ratio is at 44%. The annual rate of dividend growth over the past five years was very high at 16.59%, and over the past ten years was also very high at 25.10%.

BLK records strong growth on all key parameters; the average annual sales growth for the past 5 years was very high at 14.02%, the average annual earnings growth for the past 5 years was also very high at 13.36% and the average annual earnings growth estimates for the next 5 years is quite high at 12.25%.

The BLK stock price is 3.32% above its 20-day simple moving average, 7.00% above its 50-day simple moving average and 30.93% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

BLK will report its latest quarterly financial results on April 16. BLK is expected to post a profit of $3.58 a share, a 13.3% rise 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 solid dividend, the fact that the company has consistently raised dividend payments, the strong earnings growth prospects, and the fact that the stock is in an uptrend are all factors that make BLK stock quite attractive.

BLK Dividend Chart

BLK Dividend data by YCharts

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Chart: finviz.com

Calavo Growers Inc. (NASDAQ:CVGW)

Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores, and restaurants worldwide.

Calavo Growers has a low debt (total debt to equity is only 0.45) and it has a trailing P/E of 25.10 and a forward P/E of 16.78. The forward annual dividend yield is at 2.25%, and the payout ratio is at 57%. The annual rate of dividend growth over the past five years was very high at 13.30%, and over the past ten years was also very high at 12.46%.

CVGW records strong growth on all key parameters; the average annual sales growth for the past 5 years was very high at 12.71%, the average annual earnings growth for the past 5 years was also very high at 17.78% and the average annual earnings growth estimates for the next 5 years is very high at 15%.

The CVGW stock price is 0.11% above its 20-day simple moving average, 3.81% above its 50-day simple moving average and 14.34% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend. Analysts recommend the stock; among the five analysts covering the stock, four rate it as a strong buy and only one rates it as a hold.

Calavo Growers will report its latest quarterly financial results this month. CVGW is expected to post a profit of $0.39 a share, a 30% rise 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 solid dividend, the fact that the company consistently has raised dividend payments, the strong earnings growth prospects, the strong analysts' recommendation and the fact that the stock is in an uptrend are all factors that make CVGW stock quite attractive.

CVGW Dividend Chart

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Chart: finviz.com

Nu Skin Enterprises Inc. (NYSE:NUS)

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex brands worldwide. Nu Skin Enterprises has a low debt (total debt to equity is only 0.33) and it has a very low trailing P/E of 14.14 and a very low forward P/E of 11.01. The forward annual dividend yield is at 2.41%, and the payout ratio is only 23%. The annual rate of dividend growth over the past five years was very high at 22.30%, and over the past ten years was also very high at 15.72%.

NUS records strong growth on all key parameters; the average annual sales growth for the past 5 years was very high at 13.39%, the average annual earnings growth for the past 5 years was also extremely high at 39.39% and the average annual earnings growth estimates for the next 5 years is quite high at 11.2%.

The NUS stock price is 12.27% above its 20-day simple moving average, 17.17% above its 50-day simple moving average and 15.89% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend. Analysts recommend the stock; among the eight analysts covering the stock, six rate it as a strong buy and two rate it as a buy.

Nu Skin Enterprises will report its latest quarterly financial results on April 22. NUS is expected to post a profit of $0.80 a share, a 8.1% rise 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 compelling valuation metrics, the solid dividend, the fact that the company has consistently raised dividend payments, the strong earnings growth prospects, the strong analysts' recommendation, and the fact that the stock is in an uptrend are all factors that make NUS stock quite attractive.

NUS Dividend Chart

NUS Dividend data by YCharts

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Chart: finviz.com

CVGW Dividend data by YCharts

Source: 3 Stocks In An Uptrend That Have Grown Sales, Earnings And Dividends By Double Digits