9 Dividend Aristocrats With Major Insider Buying

|
 |  Includes: ADM, ADP, APD, CTAS, CTL, EMR, FDO, KMB, WBA
by: Dividend Screen

Dividend Aristocrats are stocks with a consecutive dividend growth of more than 25 years. The stocks are selected by Standard & Poor’s and published within the Dividend Aristocrats index. The index contains 42 stocks and measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years.

I screened the index by stocks with biggest insider buys from the last six months. Insider transactions are often a good indicator to evaluate the business future of a company. Insiders, such persons who know the company very well, show with buy and sell transactions their attitude to the company. A stock become often better after insiders bought parts of the company and vice versa.

I decided to screen only stocks with a change in insider ownership of more than 5 percent over the recent six months. 9 companies fulfilled these criteria, of which 4 are yielding above 3 percent. These are the results:

1. CenturyLink (CTL) has a market capitalization of $21.78 billion. The company employs 49,250 people, generates revenues of $7,041.53 million and has a net income of $949.13 million. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,493.24 million. Because of these figures, the EBITDA margin is 49.61 percent (operating margin 29.25 percent and the net profit margin finally 13.48 percent). Insiders increased their stake by 29.46 percent over the past six months and own 0.37 percent of the company.

The total debt representing 33.25 percent of the company’s assets and the total debt in relation to the equity amounts to 76.00 percent. Due to the financial situation, the return on equity amounts to 9.92 percent. Finally, earnings per share amounts to $1.78, of which $2.90 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 19.83, Price/Sales 3.10 and Price/Book ratio 1.12. Dividend Yield: 8.20 percent. The beta ratio is 0.73.

2. Kimberly Clark (KMB) has a market capitalization of $28.09 billion. The company employs 57,000 people, generates revenues of $19,746.00 million and has a net income of $1,762.00 million. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,611.00 million. Because of these figures, the EBITDA margin is 18.29 percent (operating margin 14.04 percent and the net profit margin finally 8.92 percent). Insiders increased their stake by 9.24 percent over the past six months and own 0.06 percent of the company.

The total debt representing 32.78 percent of the company’s assets and the total debt in relation to the equity amounts to 110.04 percent. Due to the financial situation, the return on equity amounts to 32.55 percent. Finally, earnings per share amounts to $4.18, of which $2.64 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 17.04, Price/Sales 1.40 and Price/Book ratio 4.83. Dividend Yield: 3.99 percent. The beta ratio is 0.34.

3. Emerson Electric (EMR) has a market capitalization of $36.15 billion. The company employs 133,200 people, generates revenues of $24,222.00 million and has a net income of $2,504.00 million. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,721.00 million. Because of these figures, the EBITDA margin is 19.49 percent (operating margin 14.99 percent and the net profit margin finally 10.34 percent). Insiders increased their stake by 18.46 percent over the past six months and own 0.48 percent of the company.

The total debt representing 21.80 percent of the company’s assets and the total debt in relation to the equity amounts to 50.01 percent. Due to the financial situation, the return on equity amounts to 24.31 percent. Finally, earnings per share amounts to $3.26, of which $1.38 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 15.09, Price/Sales 1.49 and Price/Book ratio 3.48. Dividend Yield: 3.27 percent. The beta ratio is 1.24.

4. Automatic Data Processing (ADP) has a market capitalization of $25.28 billion. The company employs 51,000 people, generates revenues of $9,879.50 million and has a net income of $1,254.20 million. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,133.00 million. Because of these figures, the EBITDA margin is 21.59 percent (operating margin 19.54 percent and the net profit margin finally 12.69 percent). Insiders increased their stake by 24.39 percent over the past six months and own 0.24 percent of the company.

The total debt representing 0.10 percent of the company’s assets and the total debt in relation to the equity amounts to 0.57 percent. Due to the financial situation, the return on equity amounts to 21.83 percent. Finally, earnings per share amounts to $2.57, of which $1.42 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 20.16, Price/Sales 2.53 and Price/Book ratio 4.17. Dividend Yield: 3.09 percent. The beta ratio is 0.70.

5. Air Products & Chemicals (APD) has a market capitalization of $17.37 billion. The company employs 18,500 people, generates revenues of $10,082.00 million and has a net income of $1,252.60 million. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,499.00 million. Because of these figures, the EBITDA margin is 24.79 percent (operating margin 16.09 percent and the net profit margin finally 12.42 percent). Insiders increased their stake by 17.65 percent over the past six months and own 0.19 percent of the company.

The total debt representing 32.18 percent of the company’s assets and the total debt in relation to the equity amounts to 79.35 percent. Due to the financial situation, the return on equity amounts to 21.43 percent. Finally, earnings per share amounts to $5.59, of which $2.23 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 14.78, Price/Sales 1.68 and Price/Book ratio 2.92. Dividend Yield: 2.88 percent. The beta ratio is 1.15.

6. Walgreen Company (WAG) has a market capitalization of $30.35 billion. The company employs 176,000 people, generates revenues of $72,184.00 million and has a net income of $2,714.00 million. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,393.00 million. Because of these figures, the EBITDA margin is 7.47 percent (operating margin 6.05 percent and the net profit margin finally 3.76 percent). Insiders increased their stake by 40.68 percent over the past six months and own 0.13 percent of the company.

The total debt representing 8.77 percent of the company’s assets and the total debt in relation to the equity amounts to 16.23 percent. Due to the financial situation, the return on equity amounts to 18.56 percent. Finally, earnings per share amounts to $2.94, of which $0.75 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 11.61, Price/Sales 0.41 and Price/Book ratio 2.01. Dividend Yield: 2.68 percent. The beta ratio is 0.97.

7. Archer Daniels Midland (ADM) has a market capitalization of $18.50 billion. The company employs 30,700 people, generates revenues of $80,676.00 million and has a net income of $2,018.00 million. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,551.00 million. Because of these figures, the EBITDA margin is 4.40 percent (operating margin 3.31 percent and the net profit margin finally 2.50 percent). Insiders increased their stake by 58.19 percent over the past six months and own 0.35 percent of the company.

The total debt representing 24.46 percent of the company’s assets and the total debt in relation to the equity amounts to 54.86 percent. Due to the financial situation, the return on equity amounts to 12.19 percent. Finally, earnings per share amounts to $3.27, of which $0.62 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 8.46, Price/Sales 0.23 and Price/Book ratio 0.99. Dividend Yield: 2.55 percent. The beta ratio is 0.47.

8. Cintas Corporation (CTAS) has a market capitalization of $3.96 billion. The company employs 30,000 people, generates revenues of $3,810.38 million and has a net income of $246.99 million. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $633.81 million. Because of these figures, the EBITDA margin is 16.63 percent (operating margin 11.56 percent and the net profit margin finally 6.48 percent). Insiders increased their stake by 6.8 percent over the past six months and own 14.52 percent of the company.

The total debt representing 29.55 percent of the company’s assets and the total debt in relation to the equity amounts to 55.85 percent. Due to the financial situation, the return on equity amounts to 10.17 percent. Finally, earnings per share amounts to $1.79, of which $0.49 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 17.04, Price/Sales 1.01 and Price/Book ratio 1.77. Dividend Yield: 1.82 percent. The beta ratio is 0.90.

9. Family Dollar Stores (FDO) has a market capitalization of $6.80 billion. The company employs 31,000 people, generates revenues of $8,547.84 million and has a net income of $388.44 million. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $817.57 million. Because of these figures, the EBITDA margin is 9.56 percent (operating margin 7.46 percent and the net profit margin finally 4.54 percent). Insiders increased their stake by 284.71 percent over the past six months and own 4.31 percent of the company.

The total debt representing 18.31 percent of the company’s assets and the total debt in relation to the equity amounts to 50.46 percent. Due to the financial situation, the return on equity amounts to 30.97 percent. Finally, earnings per share amounts to $3.12, of which $0.70 was paid in form of dividends to shareholders last fiscal.

Here are the price ratios of the company: The P/E ratio is 18.54, Price/Sales 0.79 and Price/Book ratio 6.16. Dividend Yield: 1.26 percent. The beta ratio is 0.31.

Disclosure: I am long KMB.