Seeking Alpha
Profile| Send Message|
( followers)  

Dividend Challengers are stocks that have raised distributions to shareholders over a period of more than five consecutive years but less than ten years. 190 dividend stocks achieved this goal, but not all of them can maintain its dividend growth policy due to a negative business performance. Let's figure out the stocks.

In an effort to find some opportunities from this investment category, I screened all Challengers with the highest increase in sales and earnings over the recent quarter compared to the same quarter last year. I observed only those stocks with a quarter over quarter sales and earnings per share growth of more than twenty-five percent. Twelve stocks fulfilled these criteria, of which four are high yields; eight stocks are recommended to buy, and 83 percent of the results are from the basic material and services sector. Stocks from the oil and gas pipeline industry are especially dominant. Here are the results, sorted by dividend yield:

1. Crestwood Midstream Partners (NYSE:CMLP) has a market capitalization of $1.19 billion. The company generates revenues of $205.82 million and has a net income of $45.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $110.08 million. Because of these figures, the EBITDA margin is 53.49% (operating margin 35.89% and the net profit margin finally 21.87%).

The total debt representing 50.55% of the company's assets and the total debt in relation to the equity amounts to 113.94%. Last fiscal year, a return on equity of 10.61% was realized. Twelve trailing months earnings per share reached a value of $1.00. Last fiscal year, the company paid $1.87 in form of dividends to shareholders. Quarter over quarter, sales are up 89.48% and earnings per share are up 34.51%.

Here are the price ratios of the company: The P/E ratio is 27.43, Price/Sales 5.80 and Price/Book ratio 2.49. Dividend Yield: 7.02%. The beta ratio is 0.90.

2. Holly Energy Partners (NYSE:HEP) has a market capitalization of $1.60 billion. The company generates revenues of $213.55 million and has a net income of $78.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $144.72 million. Because of these figures, the EBITDA margin is 67.77% (operating margin 52.27% and the net profit margin finally 36.52%).

The total debt representing 62.66% of the company's assets and the total debt in relation to the equity amounts to 183.95%. Last fiscal year, a return on equity of 16.84% was realized. Twelve trailing months earnings per share reached a value of $2.76. Last fiscal year, the company paid $3.48 in form of dividends to shareholders. Quarter over quarter, sales are up 38.39% and earnings per share 41.97%.

Here are the price ratios of the company: The P/E ratio is 21.14, Price/Sales 7.52 and Price/Book ratio 3.38. Dividend Yield: 6.03%. The beta ratio is 0.64.

3. Targa Resources Partners (NYSE:NGLS) has a market capitalization of $3.80 billion. The company generates revenues of $6,987.10 million and has a net income of $245.50 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $533.10 million. Because of these figures, the EBITDA margin is 7.63% (operating margin 5.08% and the net profit margin finally 3.51%).

The total debt representing 40.40% of the company's assets and the total debt in relation to the equity amounts to 120.85%. Last fiscal year, a return on equity of 15.85% was realized. Twelve trailing months earnings per share reached a value of $1.98. Last fiscal year, the company paid $2.41 in form of dividends to shareholders. Quarter over quarter, sales are up 26.99% and earnings per share 90.02%.

Here are the price ratios of the company: The P/E ratio is 21.03, Price/Sales 0.54 and Price/Book ratio 3.00. Dividend Yield: 6.00%. The beta ratio is 1.19.

4. Genesis Energy (NYSE:GEL) has a market capitalization of $2.21 billion. The company generates revenues of $3,089.67 million and has a net income of $51.25 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $140.68 million. Because of these figures, the EBITDA margin is 4.55% (operating margin 2.67% and the net profit margin finally 1.66%).

The total debt representing 38.09% of the company's assets and the total debt in relation to the equity amounts to 83.18%. Last fiscal year, a return on equity of 7.01% was realized. Twelve trailing months earnings per share reached a value of $0.76. Last fiscal year, the company paid $1.69 in form of dividends to shareholders. Quarter over quarter, sales are up 33.98% and earnings per share 387.19%.

Here are the price ratios of the company: The P/E ratio is 40.53, Price/Sales 0.79 and Price/Book ratio 2.80. Dividend Yield: 5.84%. The beta ratio is 0.84.

5. EV Energy Partners (NASDAQ:EVEP) has a market capitalization of $2.65 billion. The company generates revenues of $261.84 million and has a net income of $102.64 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $114.05 million. Because of these figures, the EBITDA margin is 43.56% (operating margin 15.02% and the net profit margin finally 39.20%).

The total debt representing 47.57% of the company's assets and the total debt in relation to the equity amounts to 103.59%. Last fiscal year, a return on equity of 10.70% was realized. Twelve trailing months earnings per share reached a value of $2.55. Last fiscal year, the company paid $3.05 in form of dividends to shareholders. Quarter over quarter, sales are up 38.06% and earnings per share 148.32%.

Here are the price ratios of the company: The P/E ratio is 24.54, Price/Sales 10.39 and Price/Book ratio 2.61. Dividend Yield: 4.75%. The beta ratio is 0.89.

6. Textainer Group (NYSE:TGH) has a market capitalization of $1.61 billion. The company generates revenues of $422.80 million and has a net income of $204.02 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $357.43 million. Because of these figures, the EBITDA margin is 84.54% (operating margin 63.42% and the net profit margin finally 48.25%).

The total debt representing 65.33% of the company's assets and the total debt in relation to the equity amounts to 220.70%. Last fiscal year, a return on equity of 29.91% was realized. Twelve trailing months earnings per share reached a value of $3.80. Last fiscal year, the company paid $1.28 in form of dividends to shareholders. Quarter over quarter, sales are up 38.55% and earnings per share 36.10%.

Here are the price ratios of the company: The P/E ratio is 8.65, Price/Sales 3.74 and Price/Book ratio 2.31. Dividend Yield: 4.59%. The beta ratio is 1.70.

7. Oneok Partners (NYSE:OKS) has a market capitalization of $10.84 billion. The company generates revenues of $11,322.61 million and has a net income of $830.89 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,117.05 million. Because of these figures, the EBITDA margin is 9.87% (operating margin 8.30% and the net profit margin finally 7.34%).

The total debt representing 43.33% of the company's assets and the total debt in relation to the equity amounts to 112.65%. Last fiscal year, a return on equity of 20.96% was realized. Twelve trailing months earnings per share reached a value of $3.35. Last fiscal year, the company paid $2.32 in form of dividends to shareholders. Quarter over quarter, sales are up 33.60% and earnings per share 131.21%.

Here are the price ratios of the company: The P/E ratio is 15.88, Price/Sales 1.04 and Price/Book ratio 3.27. Dividend Yield: 4.56%. The beta ratio is 0.41.

8. Comcast Corporation (NASDAQ:CMCSA) has a market capitalization of $80.54 billion. The company generates revenues of $55,842.00 million and has a net income of $5,157.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,357.00 million. Because of these figures, the EBITDA margin is 32.87% (operating margin 19.20% and the net profit margin finally 9.23%).

The total debt representing 24.91% of the company's assets and the total debt in relation to the equity amounts to 83.15%. Last fiscal year, a return on equity of 9.08% was realized. Twelve trailing months earnings per share reached a value of $1.50. Last fiscal year, the company paid $0.45 in form of dividends to shareholders. Quarter over quarter, sales are up 54.74% and earnings per share 29.15%.

Here are the price ratios of the company: The P/E ratio is 19.83, Price/Sales 1.43 and Price/Book ratio 1.69. Dividend Yield: 2.20%. The beta ratio is 1.05.

9. Ritchie Bros. Auctioneers (NYSE:RBA) has a market capitalization of $2.26 billion. The company generates revenues of $396.10 million and has a net income of $76.63 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $146.12 million. Because of these figures, the EBITDA margin is 36.89% (operating margin 26.18% and the net profit margin finally 19.35%).

The total debt representing 15.14% of the company's assets and the total debt in relation to the equity amounts to 23.71%. Last fiscal year, a return on equity of 12.80% was realized. Twelve trailing months earnings per share reached a value of $0.72. Last fiscal year, the company paid $0.44 in form of dividends to shareholders. Quarter over quarter, sales are up 28.44% and earnings per share 96.34%.

Here are the price ratios of the company: The P/E ratio is 29.64, Price/Sales 5.66 and Price/Book ratio 3.63. Dividend Yield: 2.13%. The beta ratio is 1.16.

10. Texas Pacific Land Trust (NYSE:TPL) has a market capitalization of $476.39 million. The company generates revenues of $34.30 million and has a net income of $20.59 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $30.75 million. Because of these figures, the EBITDA margin is 89.65% (operating margin 89.61% and the net profit margin finally 60.04%).

The company has no long-term debt. Last fiscal year, a return on equity of 106.02% was realized. Twelve trailing months earnings per share reached a value of $2.21. Last fiscal year, the company paid $0.21 in form of dividends to shareholders. Quarter over quarter, sales are up 105.65% and earnings per share 145.24%.

Here are the price ratios of the company: The P/E ratio is 23.45, Price/Sales 13.75 and Price/Book ratio 22.95. Dividend Yield: 0.45%. The beta ratio is 1.04.

11. Robbins & Myers (NYSE:RBN) has a market capitalization of $2.17 billion. The company generates revenues of $820.64 million and has a net income of $81.28 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $165.30 million. Because of these figures, the EBITDA margin is 20.14% (operating margin 16.00% and the net profit margin finally 9.90%).

The total debt representing 0.03% of the company's assets and the total debt in relation to the equity amounts to 0.04%. Last fiscal year, a return on equity of 9.89% was realized. Twelve trailing months earnings per share reached a value of $2.79. Last fiscal year, the company paid $0.18 in form of dividends to shareholders. Quarter over quarter, sales are up 39.23% and earnings per share 196.77%.

Here are the price ratios of the company: The P/E ratio is 17.68, Price/Sales 2.68 and Price/Book ratio 2.00. Dividend Yield: 0.40%. The beta ratio is 1.21.

12. Randgold Resources (NASDAQ:GOLD) has a market capitalization of $7.97 billion. The company generates revenues of $1,127.09 million and has a net income of $433.44 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $580.18 million. Because of these figures, the EBITDA margin is 51.48% (operating margin 43.27% and the net profit margin finally 38.46%).

The total debt representing 0.10% of the company's assets and the total debt in relation to the equity amounts to 0.12%. Last fiscal year, a return on equity of 18.97% was realized. Twelve trailing months earnings per share reached a value of $4.13. Last fiscal year, the company paid $0.40 in form of dividends to shareholders. Quarter over quarter, sales are up 116.85% and earnings per share 327.95%.

Here are the price ratios of the company: The P/E ratio is 21.03, Price/Sales 7.23 and Price/Book ratio 3.74. Dividend Yield: 0.22%. The beta ratio is 0.36.

Source: 12 Dividend Challengers With Accelerated Growth