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Dividend Challengers are stocks that have raised dividends for a period of 5-9 consecutive years. They have the potential to become one day a Dividend Contender or a Dividend Champion. The 202 listed have achieved this level of dividend continuity. I screened the investment category Dividend Challengers by the cheapest stocks with an adequate dividend return. I decided to evaluate the stocks by a cheap price-earnings to growth (PEG) ratio of less than one as well as a dividend yield of more than 3 percent. Exactly 12 companies fulfilled these criteria; four of them are high yields. These are the results in detail:

1. Triangle Capital Corp. (NYSE:TCAP) has a market capitalization of $412.96 million. The company employs 17 people, generates revenue of $35.99 million and has a net income of $25.39 million. The earnings before interest, taxes, depreciation and amortization ((EBITDA)) amounts to $20.97 million. Because of these figures, the EBITDA margin is 58.26 percent (operating margin 55.99 percent and net profit margin 70.56 percent).

The total debt represents 52.18 percent of the company’s assets and the total debt in relation to the equity amounts to 112.18 percent. Return on equity amounts to 16.40 percent. Finally, earnings per share amounts to $2.87 of which $1.65 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 6.33, Price/Sales 11.64 and Price/Book ratio 1.53. Dividend Yield: 10.20 percent. The beta ratio is 0.53 and PEG ratio 0.63.

2. TransAlta Corp. (NYSE:TAC) has a market capitalization of $4.39 billion. The company employs 2,389 people, generates revenue of $2,747.83 million and has a net income of $213.47 million. EBITDA amounts to $845.11 million. Because of these figures, the EBITDA margin is 30.76 percent (operating margin 14.47 percent and the profit margin finally 7.77 percent).

The total debt representing 42.82 percent of the company’s assets and the total debt in relation to the equity amounts to 133.30 percent. Return on equity amounts to 6.61 percent. Finally, earnings per share amounts to $1.25 of which $1.13 was paid in the form of dividends to shareholders last fiscal year.

Here are the price ratios of the company: The P/E ratio is 15.71, Price/Sales 1.66 and Price/Book ratio 1.59. Dividend Yield: 5.55 percent. The beta ratio is 0.95 and PEG ratio 0.61.

3. Textainer Group Hldgs. (NYSE:TGH) has a market capitalization of $1.25 billion. The company employs 160 people, generates revenue of $303.88 million and has a net income of $133.76 million. EBITDA amounts to $237.35 million. Because of these figures, the EBITDA margin is 78.11 percent (operating margin 56.55 percent and the net profit margin 44.02 percent).

The total debt represents 50.89 percent of the company’s assets and the total debt in relation to the equity amounts to 152.29 percent. The return on equity amounts to 22.14 percent. Finally, earnings per share amounts to $3.51 of which $0.99 was paid in form of dividends to shareholders last fiscal year.

Here are the price ratios of the company: The P/E ratio is 7.28, Price/Sales 4.18 and Price/Book ratio 2.15. Dividend Yield: 5.40 percent. The beta ratio is 1.72 and PEG ratio 0.61.

4. Alliance Resource Partners (NASDAQ:ARLP) has a market capitalization of $2.61 billion. The company employs 2,487 people, generates revenue of $1,610.06 million and has a net income of $321.02 million. EBITDA amounts to $498.65 million. Because of these figures, the EBITDA margin is 30.97 percent (operating margin 21.85 percent and the net profit margin finally 19.94 percent).

The total debt represents 48.12 percent of the company’s assets and the total debt in relation to the equity amounts to 158.51 percent. The return on equity amounts to 36.18 percent. Finally, earnings per share amounts to $8.01 of which $3.20 was paid in the form of dividends to shareholders last fiscal year.

Here are the price ratios of the company: The P/E ratio is 8.87, Price/Sales 1.63 and Price/Book ratio 3.52. Dividend Yield: 5.36 percent. The beta ratio is 0.86 and PEG ratio 0.83.

5. Tower Group (NASDAQ:TWGP) has a market capitalization of $799.14 million. The company employs 1,360 people, generates revenue of $1,458.73 million and has a net income of $121.92 million. EBITDA amounts to $407.50 million. Because of these figures, the EBITDA margin is 27.94 percent (operating margin 12.67 percent and the net profit margin finally 8.36 percent).

The total debt represents 8.88 percent of the company’s assets and the total debt in relation to the equity amounts to 34.41 percent. Due to the financial situation, the return on equity amounts to 11.03 percent. Finally, earnings per share amounts to $1.72 of which $0.39 was paid in form of dividends to shareholders last fiscal year.

Here are the price ratios of the company: The P/E ratio is 11.68, Price/Sales 0.56 and Price/Book ratio 0.78. Dividend Yield: 3.66 percent. The beta ratio is 0.57 and PEG ratio 0.56.

6. American Greetings Corp. (NYSE:AM-OLD) has a market capitalization of $648.74 million. The company employs 7,400 people, generates revenue of $1,592.57 million and has a net income of $87.02 million. EBITDA amounts to $215.75 million. Because of these figures, the EBITDA margin is 13.55 percent (operating margin 10.97 percent and the net profit margin finally 5.46 percent).

The total debt represents 15.04 percent of the company’s assets and the total debt in relation to the equity amounts to 30.47 percent. Due to the financial situation, the return on equity amounts to 12.30 percent. Finally, earnings per share amounts to $2.28 of which $0.56 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 7.14, Price/Sales 0.39 and Price/Book ratio 0.89. Dividend Yield: 3.58 percent. The beta ratio is 1.75 and PEG ratio 0.71.

7. Intel Corporation (NASDAQ:INTC) has a market capitalization of $118.69 billion. The company employs 99,900 people, generates revenue of $43,623.00 million and has a net income of $11,464.00 million. EBITDA amounts to $20,101.00 million. Because of these figures, the EBITDA margin is 46.08 percent (operating margin 35.45 percent and net profit margin 26.28 percent).

The total debt represents 3.35 percent of the company’s assets and the total debt in relation to the equity amounts to 4.28 percent. Return on equity amounts to 25.16 percent. Finally, earnings per share amounts to $2.31 of which $0.63 was paid in the form of dividends to shareholders last fiscal year.

Here are the price ratios of the company: The P/E ratio is 10.07, Price/Sales 2.80 and Price/Book ratio 2.68. Dividend Yield: 3.50 percent. The beta ratio is 1.10 and PEG ratio 0.95.

8. BHP Billiton (NYSE:BBL) has a market capitalization of $156.64 billion. The company employs 40,757 people, generates revenue of $71,739.00 million and has a net income of $23,946.00 million. EBITDA amounts to $37,927.00 million. Because of these figures, the EBITDA margin is 52.87 percent (operating margin 44.35 percent and net profit margin 33.38 percent).

The total debt represents 15.46 percent of the company’s assets and the total debt in relation to the equity amounts to 28.02 percent. Return on equity amounts to 44.92 percent. Finally, earnings per share amounts to $8.55 of which $2.02 was paid in the form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 6.70, Price/Sales 2.54 and Price/Book ratio 2.79. Dividend Yield: 3.40 percent. The beta ratio is 1.56 and PEG ratio 0.85.

9. CNOOC Limited (NYSE:CEO) has a market capitalization of $79.77 billion. The company employs 4,650 people, generates revenue of $28,780.12 million and has a net income of $8,554.42 million.EBITDA amounts to $15,342.54 million. Because of these figures, the EBITDA margin is 53.31 percent (operating margin 39.01 percent and net profit margin finally 29.72 percent).

The total debt represents 0.17 percent of the company’s assets and the total debt in relation to the equity amounts to 15.46 percent. Return on equity amounts to 27.92 percent. Finally, earnings per share amounts to $23.73 of which $5.10 was paid in the form of dividends to shareholders last fiscal year.

Here are the price ratios of the company: The P/E ratio is 7.53, Price/Sales 2.94 and Price/Book ratio 2.46. Dividend Yield: 3.27 percent. The beta ratio is 1.38 and PEG ratio 0.73.

10. Williams Companies (NYSE:WMB) has a market capitalization of $18.03 billion. The company employs 5,022 people, generates revenues of $9,616.00 million and has a net income of $-916.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $945.00 million. Because of these figures, the EBITDA margin is 9.83 percent (operating margin -5.84 percent and the net profit margin finally -9.53 percent).

The total debt representing 36.47 percent of the company’s assets and the total debt in relation to the equity amounts to 124.97 percent. Due to the financial situation, the return on equity amounts to -13.87 percent. Finally, earnings per share amounts to $1.70 of which $0.48 were paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 18.00, Price/Sales 1.92 and Price/Book ratio 2.52. Dividend Yield: 3.19 percent. The beta ratio is 1.33 and PEG ratio 0.92.

11. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $215.27 billion. The company employs 90,000 people, generates revenue of $69,943.00 million and has a net income of $23,150.00 million. EBITDA amounts to $29,927.00 million. Because of these figures, the EBITDA margin is 42.79 percent (operating margin 38.83 percent and net profit margin finally 33.10 percent).

The total debt represents 10.97 percent of the company’s assets and the total debt in relation to the equity amounts to 20.88 percent. Return on equity amounts to 44.84 percent. Finally, earnings per share amounts to $2.75 of which $0.64 was paid in the form of dividends to shareholders last fiscal year.

Here are the price ratios of the company: The P/E ratio is 9.29, Price/Sales 3.07 and Price/Book ratio 3.74. Dividend Yield: 3.14 percent. The beta ratio is 0.99 and PEG ratio 0.89.

12. Arch Coal (NYSE:ACI) has a market capitalization of $3.01 billion. The company employs 4,700 people, generates revenue of $3,186.27 million and has a net income of $159.39 million. EBITDA amounts to $691.20 million. Because of these figures, the EBITDA margin is 21.69 percent (operating margin 9.96 percent and net profit margin finally 5.00 percent).

The total debt represents 32.98 percent of the company’s assets and the total debt in relation to the equity amounts to 71.94 percent. Return on equity amounts to 7.30 percent. Finally, earnings per share amounts to $0.79 of which $0.39 was paid in the form of dividends to shareholders last fiscal year.

Here are the price ratios of the company: The P/E ratio is 18.06, Price/Sales 0.99 and Price/Book ratio 1.08. Dividend Yield: 3.09 percent. The beta ratio is 1.88 and PEG ratio 0.5.

Source: 12 Dividend Challengers That Are Cheap In Terms Of Growth