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I have searched for highly profitable companies that pay rich dividends and that are in a short-term uptrend, in a mid-term uptrend and in a long-term uptrend. Stocks in an uptrend are performing well and are in a buying mode. Those stocks would also have to show a very low forward P/E ratio.

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 were taken from Yahoo Finance and finviz.com. The screen's formula requires all stocks to comply with all of the following criteria:

  1. Price is greater than 2.00.
  2. Market cap is greater than $100 million.
  3. The forward dividend yield is greater than 3.0%.
  4. The payout ratio is less than 90%.
  5. Forward P/E is less than 14.
  6. The stock price is above the 20-day simple moving average (short-term uptrend).
  7. The stock price is above the 50-day simple moving average (mid-term uptrend).
  8. The stock price is above the 200-day simple moving average (long-term uptrend).

After running this screen on September 01, 2013, I discovered the following three stocks:

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Hillenbrand, Inc. (NYSE:HI)

Hillenbrand, Inc., a diversified industrial company, makes and sells business-to-business products and services for various industries worldwide.

Hillenbrand has many blue chip customers; some of them are shown in the chart below.

Source: company presentation

Hillenbrand has a trailing P/E of 23.81 and a very low forward P/E of 11.68. The price-to-sales ratio is low at 1.14, and the average annual earnings growth estimates for the next five years is high at 12.50%. The forward annual dividend yield is at 3.15%, and the payout ratio is at 75%. The annual rate of dividend growth over the past five years was very high at 20.52%.

Hillenbrand has recorded strong revenue and dividend growth and mild EPS growth, during the last three years and the last five years, as shown in the table below.

Source: Portfolio123

Source: company presentation

The HI stock price is 0.67% above its 20-day simple moving average, 1.46% above its 50-day simple moving average and 4.83% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Analysts recommend the stock. Among the two analysts covering the stock, one rates it as a strong buy, and one rates it as a buy.

On August 05, Hillenbrand reported its third-quarter fiscal 2013 financial results, which beat EPS expectations by $0.03. Revenue grew 72% to $409 million compared to the same quarter in 2012, with the Process Equipment Group delivering $261 million, a 181% increase. As expected, GAAP net income decreased 38% to $13 million ($0.21 per diluted share), primarily because of acquisition costs related to the Coperion transaction. On an adjusted basis, net income increased 32% to $30 million ($0.48 per diluted share), including $3 million of additional recurring amortization related to Coperion. An important measure used internally is adjusted EBITDA, which increased 43% to $64 million. On a percentage-of-sales basis, adjusted EBITDA was 16% compared to 19% in the prior year.

In the report, the company gave the following guidance:

Hillenbrand affirmed guidance provided in early December with estimated full-year revenue of approximately $1.6 billion and an adjusted diluted EPS midpoint of $1.87.

Hillenbrand has recorded very strong revenue and dividend growth, and considering its good valuation metrics and its good earnings growth prospects, HI stock can move higher. Furthermore, the rich dividend represents a nice income.

Risks to the expected capital gain and to the dividend payment include a downturn in the U.S. economy, and the company's debt of $711 million.

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Chart: finviz.com

Advanced Semiconductor Engineering Inc. (NYSE:ASX)

Advanced Semiconductor Engineering, Inc. provides semiconductor packaging and testing services in the United States, Taiwan, Asia, and Europe.

Advanced Semiconductor Engineering has a low trailing P/E of 13.77 and a very low forward P/E of 10.81. The price-to-cash ratio is low at 6.39, and the price-to-sales ratio is very low at 0.95. The PEG ratio is very low at 0.69, and the average annual earnings growth estimates for the next five years is very high at 20%. The forward annual dividend yield is at 3.28%, and the payout ratio is only 45%.

The ASX stock price is 4.89% above its 20-day simple moving average, 9.43% above its 50-day simple moving average and 11.60% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Advanced Semiconductor Engineering has recorded strong revenue and EPS growth during the last year, the last three years and the last five years, as shown in the table below.

Source: Portfolio123

On July 26, Advanced Semiconductor Engineering reported its second-quarter financial results. Diluted earnings per share for the quarter were NT$0.50 (or $0.084 per ADS), compared to diluted earnings per share of NT$0.42 for 2Q12 and NT$0.29 for 1Q13.

ASX has recorded very strong revenue and EPS growth, and considering its compelling valuation metrics and its strong earnings growth prospects, ASX stock can move higher. Furthermore, the rich dividend represents a nice income.

Risks to the expected capital gain and to the dividend payment include; a downturn in the U.S. economy, weakness in the electronics market, and the company's debt of $2.86 billion.

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Chart: finviz.com

GasLog Ltd. (NYSE:GLOG)

GasLog Ltd. primarily engages in the ownership, operation, and management of vessels in the liquefied natural gas (LNG) market worldwide. The company was incorporated in 2003 and is based in Monaco. GasLog Ltd. is a subsidiary of Blenheim Holdings Ltd.

GasLog has a trailing P/E of 27.46 and a very low forward P/E of 13.06. The price-to-cash ratio is low at 4.08, and the price to book value at 1.39. The forward annual dividend yield is at 3.20%, and the payout ratio is at 88%.

The GLOG stock price is 0.41% above its 20-day simple moving average, 1.93% above its 50-day simple moving average and 8.24% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Analysts recommend the stock. Among the twelve analysts covering the stock, five rate it as a strong buy, six rate it as a buy and only one rates it as a hold.

GasLog has recorded strong revenue and EPS growth during the last year and the last five years, as shown in the table below.

Source: Portfolio123

On August 20, GasLog reported its second-quarter financial results, which missed EPS expectations by $0.01 and beat on revenues. For the second quarter, GasLog reported profit of $20.4 million, EBITDA of $33.8 million and earnings per share ("EPS") of $0.32. The company declared quarterly dividend of $0.11 per common share is payable on September 13, 2013.

GasLog has recorded very strong revenue and EPS growth. Furthermore, there are strong industry fundamentals, supported by recent positive developments for LNG exports from the U.S. In my opinion, GLOG stock still has room to go up, and the rich dividend represents a nice income.

Risks to the expected capital gain and to the dividend payment include a downturn in the U.S. economy, lower natural gas prices, and the company's debt of $738 million.

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Chart: finviz.com

Source: 3 Good-Yielding Stocks With A Low Forward P/E Ratio In An Uptrend