4 Companies Whose Businesses and Dividends Keep Growing

Though we have seen the markets rise over the last few months, and many investors/traders calling for a market correction somewhere near here, these four companies have been passing on profits through dividends to shareholders while growing their businesses.

These stocks still look cheap by their EV/EBITDA ratio of under 6 and low P/E multiples under 10.

Earnings and book value have both increased at double digit rates over the last five years. Two of these companies have tripled off their market lows but still look cheap.

Company	Symbol	Yield	Price as of 9/7/2009	P/E	EPS Gwth (5yr Hist)	Earnings Yield (EPS/Price Per Sh)	Book Value Gwth(5yr Avg)	Cash Flow Gwth (Cur vs.Prior TTM
Apogee Enterprises	APOG	2.2%	$14.69	8.6	60.60%	11.9%	13.2%	28%
Innophos Holdings	IPHS	3.4%	$19.80	2.4	81%	43%	32.2%	39%
Safety Insurance	SAFT	4.75%	$33.68	9.5	18.5%	10.6%	16.1%	20.3%
Tidewater	TDW	2.2%	$45.05	6.4	61%	15.8%	12.6%	30.6%

Below, excerpts from each company's description of their services:

Apogee (APOG) transforms plain glass to create distinctive solutions for

architects, building owners, contractors, picture framers and others. Our glass and aluminum window,store front and curtainwall

systems make commercial buildings look great, reduce energy consumption and protect against hurricanes and blasts. Apogee's glass also reduces fading and reflection for picture framing customers. We combine the expertise of our people to engineer glass and metal building façades, complete massive orders for skyscrapers on time, and manage complex window, curtainwall and storefront installation projects. We also provide glass that makes framed art and pictures look better, while helping framers improve profitability. Leaders in our markets, Apogee leverages the strengths of our products and people to deliver distinctive solutions.

*Here's what The Fools say A Top-rated building products companies

Innophos (IPHS) is a

leading producer of specialty grade

phosphate products for the Food, Pharmaceutical and Industrial market segments. Within these segments our products cover a broad range of applications including water, paper and metal treatment, agriculture, electronics, textiles, tablets, meat

preservation and detergents. For example, specialty phosphates act as flavor enhancers in beverages, leavening agents in baked goods and cleaning agents in toothpaste. With over a century of experience, Innophos and its predecessor companies have pioneered the processes whereby complex phosphates are derived from organic phosphate rock. Our products are produced to the highest standards of quality and consistency with most of our global production facilities operating to ISO 9002 and GMP accreditation. We also hold a number of key patents governing the manufacture and use of phosphates and continue to develop new and innovative phosphate based products to address specific customer applications.

*A Magic Formula Stock with a 5 Star Rating From The Fool

Safety Insurance (SAFT) is a leading provider of private passenger automobile insurance in Massachusetts. In addition to private passenger automobile insurance (which represented 71.7% of their direct written premiums in 2008), they offer a portfolio of property and casualty insurance products, including commercial automobile (13.2% of 2008 direct written premium), homeowners (11.6% of 2008 direct written premium), dwelling fire, umbrella and business owner policies. Operating primarily in Massachusetts through their insurance subsidiaries, Safety Insurance Company, Safety Indemnity Insurance Company, and Safety Property and Casualty Insurance Company,

they have established strong relationships with 827 independent insurance

agents in 969 locations throughout Massachusetts.

Tidewater (TDW) through its subsidiaries, provides offshore supply vessels and marine support services to the offshore energy industry through the operation of fleet of offshore marine service vessels. It offers services to support various phases of offshore exploration, development, and production, including towing of and anchor handling of mobile drilling rigs and equipment; transporting supplies and personnel; and assisting in offshore construction activities.

*A Detailed Look On This Industry Leader

Disclosure: Author long APOG

Comments

[a. palmer jr.:]

I'm not crazy about risking my investment money for 2.2% yield. And at $45.05 per share TDW is out of my range. I've seen ads for companies that have increased dividends for the last 45 years and they still have divs of less than 4%. Maybe they shouldn't use dividends as a factor but rather CEO pay increases.

Oct 14 11:09 AM

[mbkelly75:]

Any one of the four would make a nice stock for exploration as opposed to a core stock, but I really like SAFT. This one could be actually be in the core portfolio. It has a 4.8% dividend yield at today's price and 5 year record of raising that dividend by a 33.1% average annual rate. It only uses 45% to pay out that dividend - very good payout ratio. It looks like what Jim Cramer would call an accidental high yielder and is worth locking in at this time. At the same time - the PEG is okay at 0.62, and the P/S Ratio is good at 0.84, and the P/B Ratio is good at 0.83.
Thank you - I will keep an eye on the others - I appreciate your work in finding them.

Oct 14 04:28 PM

[ArtfulDodger:]

Good finds. Am familiar with Apogee & Tidewater, but will do further reseach on the others.

Good finds. Thanks.

Oct 14 09:40 PM