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I have searched for profitable companies that pay rich dividends, and that have raised their payouts at a very high rate for the last five years. Those stocks would have to also show very little debt. I also looked for companies that are in short-term, mid-term and long-term uptrends. Stocks in an uptrend are performing well and are likely to see positive momentum carry them higher.

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 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. The forward dividend yield is greater than 3.30%.
  2. The payout ratio is less than 70%.
  3. The annual rate of dividend growth over the past five years is greater than 8%.
  4. Trailing P/E is less than 18.
  5. Forward P/E is less than 16.
  6. Total debt to equity is less than 0.50.
  7. Stock price is above 20-day simple moving average (short-term uptrend).
  8. Stock price is above 50-day simple moving average (mid-term uptrend).
  9. Stock price is above 200-day simple moving average (long-term uptrend).

After running this screen on May 12, 2013, I discovered the following four stocks:

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Cal-Maine Foods, Inc. (NASDAQ:CALM)

Cal-Maine Foods, Inc. engages in producing, grading, packaging, marketing, and distributing shell eggs.

Cal-Maine Foods has a very low debt (total debt to equity is only 0.13) and it has a very low trailing P/E of 11.37 and a very low forward P/E of 12.27. The current ratio is quite high at 3.20, and the price-to-sales ratio is very low at 0.84. The forward annual dividend yield is quite high at 3.90%, and the payout ratio is only 44%. The annual rate of dividend growth over the past five years was quite high at 8.49%, and over the last ten years was very high at 47.9%.

The CALM stock price is 3.78% above its 20-day simple moving average, 4.02% above its 50-day simple moving average and 4.64% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

On April 01, Cal-Maine Foods reported its fiscal third quarter 2013 financial results, which beat EPS expectations by $0.01 and was in-line on revenues. Net sales for the third quarter of fiscal 2013 were $360.4 million compared with net sales of $303.7 million for the same quarter of fiscal 2012. The company reported net income of $30.6 million, or $1.27 per basic share, for the third quarter of fiscal 2013 compared with net income of $26.1 million, or $1.09 per basic share, for the third quarter of fiscal 2012.

In the report, Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated:

Cal-Maine Foods delivered a solid performance for the third quarter of fiscal 2013 with our net sales up 19 percent over the same period last year. The higher sales reflect both improved volumes from our recent acquisitions and higher average selling prices compared with the third quarter of fiscal 2012. Specialty egg sales have been steadily increasing throughout this fiscal year and accounted for 16.7 percent of dozen eggs sold and 23.6 percent of total shell egg sales revenue for the third quarter of fiscal 2013, compared to 16.4 percent of dozen eggs sold and 23.4 percent of total shell egg sales revenue for the third quarter of fiscal 2012. We remain focused on identifying additional opportunities to market and sell specialty eggs and meet the increasing demand from our customers. We believe the performance of specialty eggs will be a key driver of our future growth.

The compelling valuation metrics, the rich dividend, the fact that the company consistently has raised dividend payments, and the fact that the stock is in an uptrend are all factors that make CALM stock quite attractive.

CALM Dividend Chart

CALM Dividend data by YCharts

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Chart: finviz.com

Meredith Corporation (NYSE:MDP)

Meredith Corporation, a media and marketing company, engages in magazine publishing and related brand licensing, television broadcasting, digital and customer relationship marketing, digital and mobile media, and video creation operations in the United States.

Meredith Corporation has a low debt (total debt to equity is only 0.43) and it has a trailing P/E of 16.05 and a low forward P/E of 15.47; the PEG ratio is at 1.07. The average annual earnings growth estimates for the next five years is very high at 15%, and the price-to sales ratio is quite low at 1.06 . The forward annual dividend yield is quite high at 3.82%, and the payout ratio is at 61%. The annual rate of dividend growth over the past five years was very high at 13.61%, and over the last ten years was very high at 15.66%.

The MDP stock price is 10.73% above its 20-day simple moving average, 11.35% above its 50-day simple moving average and 22.13% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

On April 25, Meredith Corporation reported its fiscal third quarter 2013 financial results, which beat EPS expectations by $0.04 and beat on revenues. The company reported fiscal 2013 third quarter earnings per share of $0.65, compared to $0.47 in the prior-year period. Excluding special items in both periods, fiscal 2013 third quarter earnings per share grew 9 percent to $0.72, compared to $0.66 in the prior-year period. Total Company revenues rose 7 percent to $370 million.

In the report, Meredith Chairman and CEO Stephen M. Lacy said:

Our diversified business model delivered solid growth in revenues, operating profit and cash flow for the third quarter and first nine months of fiscal 2013. And we continued to demonstrate our ongoing commitment to Total Shareholder Return by raising our dividend 7 percent, our 20th straight annual dividend increase.

All these factors -- the rich dividend, the fact that the company consistently has raised dividend payments, the good fiscal third quarter 2013 financial results, and the fact that the stock is in an uptrend -- make MDP stock quite attractive.

MDP Dividend Chart

MDP Dividend data by YCharts

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Chart: finviz.com

Maiden Holdings, Ltd. (NASDAQ:MHLD)

Maiden Holdings, Ltd., through its subsidiaries, provides reinsurance solutions to regional and specialty insurers primarily in the United States and Europe.

Maiden Holdings has a low debt (total debt to equity is only 0.33) and it has a trailing P/E of 17.11 and an extremely low forward P/E of 7.33; the PEG ratio is at 1.56. The average annual earnings growth estimates for the next five years is quite high at 15%, and the price-to sales ratio is very low at 0.41 . The price to free cash flow is exceptionally low at 2.74, and the price to book value is also very low at 0.77. The forward annual dividend yield is quite high at 3.34%, and the payout ratio is at 57%. The annual rate of dividend growth over the past five years was very high at 13.18%.

The MHLD stock price is 4.52% above its 20-day simple moving average, 4.40% above its 50-day simple moving average and 15.47% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

On May 08, Maiden Holdings reported its first quarter 2013 financial results, which beat EPS expectations by $0.03.

First Quarter 2013 Highlights

  • Annualized operating return on common equity of 9.8% compared to 9.9% in the first quarter of 2012
  • Net operating earnings available to Maiden common shareholders of $21.1 million, or $0.29 per diluted common share compared with $19.4 million, or $0.27 per diluted common share in the first quarter of 2012
  • Combined ratio of 97.5% compared to 97.9% in the first quarter of 2012
  • Net investment income increased 19.2% to $22.0 million compared to the first quarter of 2012
  • Net premiums written increased 16.6% to $689.1 million versus the same period last year
  • Book value per common share of $12.10, up 1.2% versus year-end 2012

In the report, Art Raschbaum, President and Chief Executive Officer of Maiden, said:

Strong first quarter results reflect the favorable impact of 2012 underwriting actions, continued strengthening of investment earnings and robust revenue growth, from the AmTrust segment in particular, driven by the continued improvement in the primary insurer pricing environment in the U.S. and select global markets. We remain focused on maintaining disciplined underwriting, reducing exposure to volatility, and delivering significant value to our regional and specialty insurer clients.

All these factors -- the very low multiples, the rich dividend, the fact that the company consistently has raised dividend payments, the fact that the stock is trading way below book value, and the fact that the stock is in an uptrend -- make MHLD stock quite attractive.

MHLD Dividend Chart

MHLD Dividend data by YCharts

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Chart: finviz.com

Intel Corporation (NASDAQ:INTC)

Intel Corporation designs, manufactures, and sells integrated digital technology platforms worldwide.

Intel has a very low debt (total debt to equity is only 0.26) and it has a very low trailing P/E of 12.25 and a very low forward P/E of 12.07; the PEG ratio is quite low at 1.13. The average annual earnings growth estimates for the next five years is quite high at 10.83%. The forward annual dividend yield is quite high at 3.67%, and the payout ratio is only 45%. The annual rate of dividend growth over the past five years was quite high at 9.97%, and over the last ten years was very high at 27.39%.

The INTC stock price is 6.17% above its 20-day simple moving average, 11.47% above its 50-day simple moving average and 12.35% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

On April 16, Intel reported its first quarter 2013 financial results. The company reported first-quarter revenue of $12.6 billion, operating income of $2.5 billion, net income of $2.0 billion and EPS of $0.40. The company generated approximately $4.3 billion in cash from operations, paid dividends of $1.1 billion, and used $533 million to repurchase 25 million shares of stock.

In the report, Paul Otellini, Intel president and CEO said:

Amidst market softness, Intel performed well in the first quarter and I'm excited about what lies ahead for the company. We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors early this quarter. We are working with our customers to introduce innovative new products across multiple operating systems. The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace.

The compelling valuation metrics, the rich dividend, the fact that the company consistently has raised dividend payments, and the fact that the stock is in an uptrend are all factors that make INTC stock quite attractive.

INTC Dividend Chart

INTC Dividend data by YCharts

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Chart: finviz.com

Source: 4 High-Yielders In Uptrends That Have Raised Payouts By At Least 8% A Year For 5 Years