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The S&P 500 is a popular and widely used financial index that summarizes the performance of 500 leading US companies. The average market capitalization of a S&P 500 member equity amounts to $21.5 billion.

I screened stocks from the S&P 500 index with a dividend yield of more than 3%, a price to book ratio of less than two and a low forward price to earnings ratio (under 15). Because 59 stocks survived the screening criteria’s, I decided to implement a growth criterion. This is the expected earnings per share growth for next year which should be over 15%. Finally, 16 stocks remained of which five have a dividend yield of more than 4%.

Here are my 3 most promising stocks from the screening results:

1. NYSE (NYX) is acting within the diversified investments industry. The company has a market capitalization of $7.2 billion, generates revenues in an amount of $4.3 billion and a net income of $572.0 million. It follows P/E ratio is 12.5 and forward price to earnings ratio 9.2, price/sales 1.7 and price/book ratio 1.0. Dividend yield: 4.4%. Years of consecutive dividend increasing: 0 year. 5-year dividend growth: 0%. The company paid dividends since 2007. The expected growth for next year amounts to 16.1% and 10.6% for the upcoming 5 years.

2. Eaton (ETN) is acting within the industrial electrical equipment industry. The company has a market capitalization of $13.9 billion, generates revenues in an amount of $15.1 billion and a net income of $1.2 billion. It follows P/E ratio is 11.9 and forward price to earnings ratio 8.6, price/sales 0.9 and price/book ratio 1.7. Dividend yield: 3.3%. Years of consecutive dividend increasing: 1 Year. 5-year dividend growth: 1.1%. The company paid dividends since 1923. The expected growth for next year amounts to 18.1% and 12.8% for the upcoming 5 years.

3. Bemis (BMS) is acting within the packaging and containers industry. The company has a market capitalization of $3.1 billion, generates revenues in an amount of $5.2 billion and a net income of $217.4 million. It follows P/E ratio is 14.8 and forward price to earnings ratio 12.04, price/sales 0.6 and price/book ratio 1.7. Dividend Yield: 3.2%. Years of consecutive dividend increasing: 19 Years. 5-year dividend growth: 4.9%. The company paid dividends since 1922. The expected growth for next year amounts to 16.4% and 8.0% for the upcoming 5 years.

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 14.5 while the average forward P/E ratio is 9.8. The dividend yield has an average value of 3.7%. Price to book ratio is 1.3 and price to sales ratio 1.0. The average operating margin amounts to 9.8%.

Source: 3 Cheap S&P 500 Dividend Stocks With High Growth