Seeking Alpha
Profile| Send Message|
( followers)  

Earnings growth and dividend yield are not mutually exclusive. On the contrary, many companies with attractive growth prospects also provide investors with income in excess of treasury bonds.

A screen was performed to find stocks that bridge growth and income. Each of the following companies has a minimum average analyst forecast of 15% earnings growth while paying a dividend yield in excess of the 10-year treasury yield. Moreover, each of these stocks had over a 5% average annual increase in dividend payments over the past 10 years. Thus, each of these dividend stocks pays more than treasuries and has a long-term trend of earnings and dividend growth, which is better than the static interest payments on fixed-rate treasuries.

Price multiples, dividend histories, and return of equity histories are provided below:

Aceto Corp. (NASDAQ:ACET) recently traded at $7.01 per share. At this price level, the stock has a 2.9% dividend yield. For 10 out of the past 10 fiscal years, a share of ACET paid a total of $1.53 in dividends. Of these dividend payments, a total of $0.98 was paid in the last five years.

ACET shareholders have seen a 1.6% change in share price over the past year. At present, shares of this micro-cap stock trade at a price-to-book ratio of 1.2, a price-to-earnings multiple of 20.6, and a price-to-sales multiple of 0.4 (trailing twelve months). Over the past decade shareholders enjoyed a 8.8% average annual return on equity.

Arch Coal Inc. (NYSE:ACI) recently traded at $13.87 per share. At this price level, the stock has a 3.2% dividend yield. For 10 out of the past 10 fiscal years, a share of ACI paid a total of $2.25 in dividends. Of these dividend payments, a total of $1.58 was paid in the last five years.

ACI shareholders have endured a -4.4% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 0.8, a price-to-earnings multiple of 17.6, and a price-to-sales multiple of 0.8 (trailing twelve months). Over the past decade shareholders enjoyed a 7.8% average annual return on equity.

Energy Transfer Partners LP (NYSE:ETP) recently traded at $48.32 per share. At this price level, the stock has a 7.4% dividend yield. For 10 out of the past 10 fiscal years, a share of ETP paid a total of $23.25 in dividends. Of these dividend payments, a total of $16.33 was paid in the last five years.

ETP shareholders have seen a 5.4% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 2.0, a price-to-earnings multiple of 35.8, and a price-to-sales multiple of 1.4 (trailing twelve months). Over the past decade shareholders saw a 17.1% average annual return on equity.

Graco Inc. (NYSE:GGG) recently traded at $43.1 per share. At this price level, the stock has a 2.1% dividend yield. For 10 out of the past 10 fiscal years, a share of GGG paid a total of $5.03 in dividends. Of these dividend payments, a total of $3.54 was paid in the last five years.

GGG shareholders have seen a 6.0% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 7.7, a price-to-earnings multiple of 19.1, and a price-to-sales multiple of 2.9 (trailing twelve months). Over the past decade shareholders saw a 45.3% average annual return on equity.

Johnson Controls Inc. (NYSE:JCI) recently traded at $31.5 per share. At this price level, the stock has a 2.3% dividend yield. For 10 out of the past 10 fiscal years, a share of JCI paid a total of $4.10 in dividends. Of these dividend payments, a total of $2.64 was paid in the last five years.

JCI shareholders have seen a 0.8% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 1.9, a price-to-earnings multiple of 13.4, and a price-to-sales multiple of 0.5 (trailing twelve months). Over the past decade shareholders saw a 13.7% average annual return on equity.

Mine Safety Appliances Co. (NYSE:MSA) recently traded at $34.5 per share. At this price level, the stock has a 3.0% dividend yield. For 10 out of the past 10 fiscal years, a share of MSA paid a total of $5.96 in dividends. Of these dividend payments, a total of $4.41 was paid in the last five years.

MSA shareholders have seen a 4.2% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 2.7, a price-to-earnings multiple of 19.8, and a price-to-sales multiple of 1.1 (trailing twelve months). Over the past decade shareholders saw a 15.7% average annual return on equity.

Nucor Corporation (NYSE:NUE) recently traded at $42.87 per share. At this price level, the stock has a 3.4% dividend yield. For 10 out of the past 10 fiscal years, a share of NUE paid a total of $7.12 in dividends. Of these dividend payments, a total of $5.89 was paid in the last five years.

NUE shareholders have seen a 8.3% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 1.8, a price-to-earnings multiple of 21.7, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders saw a 17.1% average annual return on equity.

RPC Inc. (NYSE:RES) recently traded at $17.89 per share. At this price level, the stock has a 2.2% dividend yield. For 10 out of the past 10 fiscal years, a share of RES paid a total of $0.80 in dividends. Of these dividend payments, a total of $0.67 was paid in the last five years.

RES shareholders have sustained a -2.0% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 3.7, a price-to-earnings multiple of 9.5, and a price-to-sales multiple of 1.6 (trailing twelve months). Over the past decade shareholders saw a 17.2% average annual return on equity.

Meridian Bioscience Inc. (NASDAQ:VIVO) recently traded at $19.82 per share. At this price level, the stock has a 3.8% dividend yield. For 10 out of the past 10 fiscal years, a share of VIVO paid a total of $4.00 in dividends. Of these dividend payments, a total of $3.08 was paid in the last five years.

VIVO shareholders have seen a 5.2% change in share price over the past year. At present, shares of this small-cap stock trade at a price-to-book ratio of 5.9, a price-to-earnings multiple of 30.5, and a price-to-sales multiple of 5.1 (trailing twelve months). Over the past decade shareholders saw a 23.4% average annual return on equity.

Valero Energy Corporation (NYSE:VLO) recently traded at $23.51 per share. At this price level, the stock has a 2.6% dividend yield. For 10 out of the past 10 fiscal years, a share of VLO paid a total of $2.77 in dividends. Of these dividend payments, a total of $2.15 was paid in the last five years.

VLO shareholders have enjoyed a 11.7% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 0.8, a price-to-earnings multiple of 6.0, and a price-to-sales multiple of 0.1 (trailing twelve months). Over the past decade shareholders saw a 12.5% average annual return on equity.

Watsco Inc. (NYSE:WSO) recently traded at $67.3 per share. At this price level, the stock has a 3.7% dividend yield. For 10 out of the past 10 fiscal years, a share of WSO paid a total of $9.36 in dividends. Of these dividend payments, a total of $7.94 was paid in the last five years.

WSO shareholders have seen a 3.4% change in share price over the past year. At present, shares of this mid-cap stock trade at a price-to-book ratio of 2.8, a price-to-earnings multiple of 25.3, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders saw a 11.3% average annual return on equity.

Of these stocks, RES and VLO are particularly attractive. These two stocks are opportunities for growth, income, and attractive valuations. Investors should consider adding these two stocks to their income portfolio while periodically monitoring the other stocks on this list for more attractive valuations.

Source: Dividend Stocks For Earnings And Growth