3 Interesting Dividend Achievers With Strong EPS Growth

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 |  Includes: AVP, LEG, VIVO
by: Dividend Screen

For income investors or retirees, it is important to know some dividend stocks with a solid dividend history. Most popular are Dividend Champions (stocks with a history of rising dividend of 25 or more years). The S&P, a subsidiary of McGraw Hill Companies (MHP), jumped on the story and created the S&P 500 Dividend Aristocrats. Finally, there are Dividend Contenders (10-24 years) and Dividend Challengers (5-9 years).

I'd like to focus on stocks in a fourth category that summarize Dividend Challengers and Dividend Champions. I am talking about Dividend Achievers. Those are stocks with consecutive dividend increases of more than 10 years in a row. 189 companies have increased dividends for more than 10 years and 48 of them have a dividend yield of more than 4 percent. I decided to select only stocks with an expected earnings per share growth of more than 10 percent for the next five years. Seven stocks remained that fit the screening criteria.

Here are the 3 most promising stocks:

1. Avon Products (NYSE:AVP) is acting within the personal products industry. The company has a market capitalization of USD 9.3 billion, generates revenues in an amount of USD 11.3 billion and a net income of USD 737.7 million. It follows P/E ratio is 12.7 and forward price to earnings ratio 9.5, Price/Sales 0.8 and Price/Book ratio 4.6. Dividend Yield: 4.2 percent. Years of Consecutive Dividend Increasing: 18 Years. 5-Year Dividend Growth: 5.7 percent. The company has paid dividends since 1919. The expected growth for next year amounts to 11.7 and 12.1 percent for the upcoming 5 years.

2. Leggett and Platt (NYSE:LEG) is acting within the home furnishings and fixtures industry. The company has a market capitalization of USD 2.9 billion, generates revenues in an amount of USD 3.5 billion and a net income of USD 179.2 million. It follows P/E ratio is 17.4 and forward price to earnings ratio 12.2, Price/Sales 0.8 and Price/Book ratio 2.0. Dividend Yield: 5.4 percent. Years of Consecutive Dividend Increasing: 39 Years. 5-Year Dividend Growth: 11.3 percent. The company paid dividends since 1939. The expected growth for next year amounts to 27.8 and 13.8 percent for the upcoming 5 years.

3. Meridian (NASDAQ:VIVO) is acting within the diagnostic substances industry. The company has a market capitalization of USD 723.7 million, generates revenues in an amount of USD 153.9 million and a net income of USD 25.4 million. It follows Price/Earnings ratio is 28.4 and forward price to earnings ratio 20.5, Price/Sales 4.7 and Price/Book ratio 5.3. Dividend Yield: 4.3 percent. Years of Consecutive Dividend Increasing: 11 Years. 5-Year Dividend Growth: 22.6 percent. The company paid dividends since 1990. The expected growth for next year amounts to 22.9 and 17.3 percent for the upcoming 5 years.

Take a closer look at the full yield table of Dividend Achievers and stocks with a yield of more than 4 percent and a double digit earnings per share growth. The average price to earnings ratio (P/E ratio) of the sheet amounts to 20.0 while the average forward P/E ratio is 12.3. The dividend yield has an average value of 4.6 percent. Price to book ratio is 2.6 and price to sales ratio 1.8. The expected earnings per share growth for the next five years amounts to 20.3 percent.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.