Seeking Alpha
Profile| Send Message|
( followers)  

The amount of debt is of huge importance for investors. The debt level is a capital capacity measure and something like a buffer for tough times. If the company gets trouble, big credit lines could help the make sure that the company bounces back on track.

I screened the investment category "Dividend Achievers" by stocks with a very low debt to equity ratio (below 0.1). Dividend Achievers are stocks that have raised their dividend payments for more than 10 consecutive years. 189 companies with such an impressive dividend history are listed at the capital markets.

As result, twenty-two stocks fulfilled these criteria but only fourteen are recommended by brokerage firms. These are the cheapest results in detail with a P/E ratio of less than 15:

1. Chevron Corporation (NYSE:CVX) has a market capitalization of $195.02 billion. The company generates revenues of $253,706.00 million and has a net income of $27,008.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $60,545.00 million. Because of these figures, the EBITDA margin is 23.86% (operating margin 18.78% and the net profit margin finally 10.65%).

The total debt representing 4.85% of the company's assets and the total debt in relation to the equity amounts to 8.36%. Last fiscal year, a return on equity of 23.75% was realized. Twelve trailing months earnings per share reached a value of $13.61. Last fiscal year, the company paid $3.09 in form of dividends to shareholders. The company raised dividends over 25 consecutive years.

Here are the price ratios of the company: The P/E ratio is 7.26, Price/Sales 0.77 and Price/Book ratio 1.61. Dividend Yield: 3.64%. The beta ratio is 0.78.

2. Exxon Mobil Corporation (NYSE:XOM) has a market capitalization of $383.82 billion. The company generates revenues of $486,429.00 million and has a net income of $42,206.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $89,087.00 million. Because of these figures, the EBITDA margin is 18.31% (operating margin 15.06% and the net profit margin finally 8.68%).

The total debt representing 5.15% of the company's assets and the total debt in relation to the equity amounts to 11.03%. Last fiscal year, a return on equity of 27.26% was realized. Twelve trailing months earnings per share reached a value of $8.28. Last fiscal year, the company paid $1.85 in form of dividends to shareholders. The company raised dividends over 30 consecutive years.

Here are the price ratios of the company: The P/E ratio is 9.91, Price/Sales 0.79 and Price/Book ratio 2.52. Dividend Yield: 2.78%. The beta ratio is 0.49.

3. Murphy Oil Corporation (NYSE:MUR) has a market capitalization of $9.26 billion. The company generates revenues of $27,745.55 million and has a net income of $740.93 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,685.09 million. Because of these figures, the EBITDA margin is 9.68% (operating margin 5.59% and the net profit margin finally 2.67%).

The total debt representing 4.24% of the company's assets and the total debt in relation to the equity amounts to 6.83%. Last fiscal year, a return on equity of 8.73% was realized. Twelve trailing months earnings per share reached a value of $4.07. Last fiscal year, the company paid $1.10 in form of dividends to shareholders. The company raised dividends over 15 consecutive years.

Here are the price ratios of the company: The P/E ratio is 11.72, Price/Sales 0.33 and Price/Book ratio 1.05. Dividend Yield: 2.31%. The beta ratio is 1.22.

4. CARBO Ceramics (NYSE:CRR) has a market capitalization of $1.91 billion. The company generates revenues of $625.70 million and has a net income of $130.14 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $233.62 million. Because of these figures, the EBITDA margin is 37.34% (operating margin 31.58% and the net profit margin finally 20.80%).

The company has no long-term debt and serves $32.03 million in cash and short-term investments. Last fiscal year, a return on equity of 22.46% was realized. Twelve trailing months earnings per share reached a value of $5.63. Last fiscal year, the company paid $0.88 in form of dividends to shareholders. The company raised dividends over 11 consecutive years.

Here are the price ratios of the company: The P/E ratio is 14.70, Price/Sales 3.05 and Price/Book ratio 3.04. Dividend Yield: 1.16%. The beta ratio is 0.86.

5. Helmerich & Payne (NYSE:HP) has a market capitalization of $4.97 billion. The company generates revenues of $2,543.89 million and has a net income of $434.67 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,017.98 million. Because of these figures, the EBITDA margin is 40.02% (operating margin 27.62% and the net profit margin finally 17.09%).

The total debt representing 6.99% of the company's assets and the total debt in relation to the equity amounts to 10.70%. Last fiscal year, a return on equity of 14.26% was realized. Twelve trailing months earnings per share reached a value of $4.63. Last fiscal year, the company paid $0.26 in form of dividends to shareholders. The company raised dividends over 39 consecutive years.

Here are the price ratios of the company: The P/E ratio is 9.99, Price/Sales 1.95 and Price/Book ratio 1.51. Dividend Yield: 0.61%. The beta ratio is 1.21.

Take a closer look at the full table of Dividend Achievers with lowest debt. The average price to earnings ratio (P/E ratio) amounts to 16.84 and forward P/E ratio is 14.14. The dividend yield has a value of 1.89 percent. Price to book ratio is 3.46 and price to sales ratio 1.75. The operating margin amounts to 16.61 percent and the beta ratio is 0.89.

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

Source: 5 Inexpensive Dividend Achievers With Buy Recommendations And Low Debt Ratios