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[Originally published on 7/19/2014]

Dividend stocks are a passion for me but most of the long-term dividend payers and growers underperformed the market in recent years.

However, I maintain my strategy because I know what I own and how much return the positions will deliver over the long-run. I don't care about my friends and other investor colleagues and what they might say about my boring strategy.

Toady I've screened the market for cheap opportunities, that is, stocks that look fundamentally cheap. It does not mean that they perform well in the near future but they offer a good yield with solid fundamentals, which is are good seeds for future cash crops.

My criteria are:

- Dividend growth for more than 5 consecutive years

- Debt-to-equity ratio under 0.5

- Dividend yield above 3 percent

- Market cap over $2 billion

- Forward P/E below 15

8 companies survived my screening. Below are the stocks in review.

Colony Financial (NYSE:CLNY) has a market capitalization of $2.09 billion. The company generates revenue of $184.82 million and has net income of $125.92 million. Colony Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $138.92 million. The EBITDA margin is 75.16 percent (the operating margin is 68.51 percent and the net profit margin 68.13 percent).

Financial Analysis: The total debt represents 23.44 percent of Colony Financial’s assets and the total debt in relation to the equity amounts to 36.58 percent. The company realized a return on equity of 5.48 percent. Trailing twelve months earnings per share reached $1.10 and last fiscal year, the company paid $1.40 in the form of dividends to shareholders.

Market Valuation: Here are the ratios for the company: The P/E ratio is 20.54, the P/S ratio is 11.31 and the P/B ratio is finally 1.03. The dividend yield amounts to 6.36 percent and the beta ratio has a value of 0.79.

Old Republic (NYSE:ORI) has a market capitalization of $4.37 billion. The company employs 7,900 people, generates revenue of $5,442.70 million and has a net income of $448.00 million. Old Republic’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $718.60 million. The EBITDA margin is 13.20 percent (the operating margin is 12.77 percent and the net profit margin 8.23 percent).

Financial Analysis: The total debt represents 3.44 percent of Old Republic’s assets and the total debt in relation to the equity amounts to 15.08 percent. The company has a return on equity of 12.15 percent. Trailing twelve months earnings per share reached $2.03 and last fiscal year, Old Republic paid $0.72 in the form of dividends to shareholders.

Market Valuation: Here are the ratios for the company: The P/E ratio is 8.26, the P/S ratio is 0.80 and the P/B ratio is finally 1.16. The dividend yield amounts to 4.35 percent and the beta ratio has a value of 0.89.

First American Financial (NYSE:FAF) has a market capitalization of $2.95 billion. The company employs 17,292 people, generates revenue of $4,956.08 million and has a net income of $187.06 million. First American Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $400.92 million. The EBITDA margin is 8.09 percent (the operating margin is 6.58 percent and the net profit margin 3.77 percent).

Financial Analysis: The total debt represents 4.76 percent of First American Financial’s assets and the total debt in relation to the equity amounts to 12.65 percent. The company has a return on equity of 7.75 percent. Trailing twelve months earnings per share reached $1.59. Last fiscal year, First American Financial paid $0.48 in the form of dividends to shareholders.

Market Valuation: Here are the ratios for the company: The P/E ratio is 17.40, the P/S ratio is 0.60 and the P/B ratio is finally 1.19. The dividend yield amounts to 3.47 percent and the beta ratio has a value of 0.91.

ABB (NYSE:ABB) has a market capitalization of $52.44 billion. The company employs 147,700 people, generates revenue of $41,848.00 million and has a net income of $2,944.00 million. ABB’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,188.00 million. The EBITDA margin is 14.79 percent (the operating margin is 10.48 percent and the net profit margin 7.03 percent).

Financial Analysis: The total debt represents 16.69 percent of ABB’s assets and the total debt in relation to the equity amounts to 42.95 percent. The company has a return on equity of 15.87 percent. Trailing twelve months earnings per share reached $1.17.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.47, the P/S ratio is 1.26 and the P/B ratio is finally 2.81. The dividend yield amounts to 3.46 percent and the beta ratio has a value of 1.43.

ConocoPhillips (NYSE:COP) has a market capitalization of $104.06 billion. The company employs 18,800 people, generates revenue of $56,185.00 million and has a net income of $8,037.00 million. ConocoPhillips’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,761.00 million. The EBITDA margin is 36.95 percent (the operating margin is 22.78 percent and the net profit margin 14.30 percent).

Financial Analysis: The total debt represents 18.35 percent of ConocoPhillips’s assets and the total debt in relation to the equity amounts to 41.59 percent. The company realized a return on equity of 15.94 percent. Trailing twelve months earnings per share reached $6.51 and last fiscal year, ConocoPhillips paid $2.70 in the form of dividends to shareholders.

Market Valuation: Here are the ratios for the company: The P/E ratio is 13.03, the P/S ratio is 1.85 and the P/B ratio is finally 1.99. The dividend yield amounts to 3.45 percent and the beta ratio has a value of 1.02.

Chevron (NYSE:CVX) has a market capitalization of $248.22 billion. The company employs 64,600 people, generates revenue of $220,264.00 million and has a net income of $21,597.00 million. Chevron’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41,912.00 million. The EBITDA margin is 19.03 percent (the operating margin is 12.59 percent and the net profit margin 9.81 percent).

Financial Analysis: The total debt represents 8.05 percent of Chevron’s assets and the total debt in relation to the equity amounts to 13.70 percent. The company realized a return on equity of 15.00. Trailing twelve months earnings per share reached $10.27 and last fiscal year, Chevron paid $3.90 in the form of dividends to shareholders.

Market Valuation: Here are the ratios for the company: The P/E ratio is 12.70, the P/S ratio is 1.13 and the P/B ratio is finally 1.67. The dividend yield amounts to 3.28 percent and the beta ratio has a value of 1.08.

BHP Billiton (NYSE:BHP) has a market capitalization of $115.72 billion. The company employs 49,496 people, generates revenue of $65,953.00 million and has a net income of $12,820.00 million. BHP Billiton’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $28,819.00 million. The EBITDA margin is 43.70 percent (the operating margin is 31.84 percent and the net profit margin 19.44 percent).

Financial Analysis: The total debt represents 23.84 percent of BHP Billiton’s assets and the total debt in relation to the equity amounts to 46.96 percent. The company realized a return on equity of 16.44 percent. Trailing twelve months earnings per share reached $5.58 and last fiscal year, BHP Billiton paid $2.28 in the form of dividends to shareholders.

Market Valuation: Here are the ratios for the company: The P/E ratio is 12.91, the P/S ratio is 2.85 and the P/B ratio is finally 1.64. The dividend yield amounts to 3.27 percent and the beta ratio has a value of 1.60.

Syngenta (NYSE:SYT) has a market capitalization of $33.37 billion. The company employs 29,000 people, generates revenue of $14,688.00 million and has a net income of $1,649.00 million. Syngenta’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,853.00 million. The EBITDA margin is 19.42 percent (the operating margin is 14.20 percent and the net profit margin 11.23 percent).

Financial Analysis: The total debt represents 15.86 percent of Syngenta’s assets and the total debt in relation to the equity amounts to 33.78 percent. The company realized a return on equity of 18.00 percent. Trailing twelve months earnings per share reached $3.56 and last fiscal year, Syngenta paid $2.00 in the form of dividends to shareholders.

Market Valuation: Here are the ratios for the company: The P/E ratio is 20.45, the P/S ratio is 2.30 and the P/B ratio is finally 3.52. The dividend yield amounts to 3.13 percent and the beta ratio has a value of 1.05.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

Source: 8 Cheap Dividend Growth Stars You Must Know