10 Cheapest Stocks With Fastest Dividend Growth In May 2012

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Includes: BG, DSW, HFC, HPQ, KEY, NOC, PRI, SWY, VIAB, WRB
by: Dividend Screen

It's all about dividends and dividend growth. The higher the growth rate, the better the valuation of the stock. Not enough, what matters is the possibility to beat the expectations of the market. That's a fact we cannot deliver here because we are no clairvoyants. The good thing on stocks with dividend growth is that the company is on track. The management sees good prospects and wants to give back money to shareholders.

However, I screened stocks by fastest dividend growth within the past month. In total, there are 50 stocks that raised dividends compared to the previous declaration of which 35 have a double digit growth rate. In addition, I observed only stocks with a forward price to earnings ratio of less than 15 and a market capitalization of more than $1 billion. Here are the results sorted by dividend yield:

1. Northrop Grumman (NYSE:NOC) has a market capitalization of $14.83 billion. The company generates revenues of $26,412.00 million and has a net income of $2,086.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,775.00 million. Because of these figures, the EBITDA margin is 14.29% (operating margin 12.40% and the net profit margin finally 7.90%).

The total debt representing 15.54% of the company's assets and the total debt in relation to the equity amounts to 38.20%. Last fiscal year, a return on equity of 17.55% was realized. Twelve trailing months earnings per share reached a value of $7.72. Last fiscal year, the company paid $1.97 in form of dividends to shareholders. The dividend growth amounted to 10.0%.

Here are the price ratios of the company: The P/E ratio is 7.64, Price/Sales 0.56 and Price/Book ratio 1.44. Dividend Yield: 3.76%. The beta ratio is 1.09.

2. Safeway (NYSE:SWY) has a market capitalization of $4.67 billion. The company generates revenues of $43,630.20 million and has a net income of $518.20 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,283.40 million. Because of these figures, the EBITDA margin is 5.23% (operating margin 2.60% and the net profit margin finally 1.19%).

The total debt representing 35.89% of the company's assets and the total debt in relation to the equity amounts to 146.89%. Last fiscal year, a return on equity of 11.91% was realized. Twelve trailing months earnings per share reached a value of $1.76. Last fiscal year, the company paid $0.56 in form of dividends to shareholders. The dividend growth amounted to 20.70%.

Here are the price ratios of the company: The P/E ratio is 11.04, Price/Sales 0.11 and Price/Book ratio 1.55. Dividend Yield: 3.64%. The beta ratio is 0.78.

3. KeyCorp (NYSE:KEY) has a market capitalization of $7.25 billion. The company generates revenues of $2,889.00 million and has a net income of $976.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,842.00 million. Because of these figures, the EBITDA margin is 63.76% (operating margin 33.01% and the net profit margin finally 23.95%).

The total debt representing 13.03% of the company's assets and the total debt in relation to the equity amounts to 116.79%. Last fiscal year, a return on equity of 9.53% was realized. Twelve trailing months earnings per share reached a value of $0.92. Last fiscal year, the company paid $0.10 in form of dividends to shareholders. The dividend growth amounted to 66.70%.

Here are the price ratios of the company: The P/E ratio is 8.31, Price/Sales 1.75 and Price/Book ratio 0.74. Dividend Yield: 2.67%. The beta ratio is 0.87.

4. Hewlett-Packard (NYSE:HPQ) has a market capitalization of $45.08 billion. The company generates revenues of $127,245.00 million and has a net income of $7,074.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14,661.00 million. Because of these figures, the EBITDA margin is 11.52% (operating margin 7.61% and the net profit margin finally 5.56%).

The total debt representing 23.65% of the company's assets and the total debt in relation to the equity amounts to 79.31%. Last fiscal year, a return on equity of 17.89% was realized. Twelve trailing months earnings per share reached a value of $2.58. Last fiscal year, the company paid $0.40 in form of dividends to shareholders. The dividend growth amounted to 10.0%.

Here are the price ratios of the company: The P/E ratio is 8.83, Price/Sales 0.35 and Price/Book ratio 1.15. Dividend Yield: 2.36%. The beta ratio is 1.08.

5. Viacom (NASDAQ:VIAB) has a market capitalization of $25.79 billion. The company generates revenues of $14,914.00 million and has a net income of $2,183.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,894.00 million. Because of these figures, the EBITDA margin is 26.11% (operating margin 24.29% and the net profit margin finally 14.64%).

The total debt representing 32.30% of the company's assets and the total debt in relation to the equity amounts to 85.20%. Last fiscal year, a return on equity of 23.94% was realized. Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, the company paid $0.80 in form of dividends to shareholders. The dividend growth amounted to 10.0%.

Here are the price ratios of the company: The P/E ratio is 11.89, Price/Sales 1.71 and Price/Book ratio 3.10. Dividend Yield: 2.29%. The beta ratio is 1.23.

6. HollyFrontier (NYSE:HFC) has a market capitalization of $6.27 billion. The company generates revenues of $15,439.53 million and has a net income of $1,059.70 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,876.14 million. Because of these figures, the EBITDA margin is 12.15% (operating margin 11.12% and the net profit margin finally 6.86%).

The total debt representing 11.78% of the company's assets and the total debt in relation to the equity amounts to 23.34%. Last fiscal year, a return on equity of 34.68% was realized. Twelve trailing months earnings per share reached a value of $6.49. Last fiscal year, the company paid $0.34 in form of dividends to shareholders. The dividend growth amounted to 50.0%.

Here are the price ratios of the company: The P/E ratio is 4.67, Price/Sales 0.41 and Price/Book ratio 1.22. Dividend Yield: 1.98%. The beta ratio is 0.94.

7. Bunge Limited (NYSE:BG) has a market capitalization of $9.02 billion. The company generates revenues of $58,743.00 million and has a net income of $896.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,685.00 million. Because of these figures, the EBITDA margin is 2.87% (operating margin 1.60% and the net profit margin finally 1.53%).

The total debt representing 17.53% of the company's assets and the total debt in relation to the equity amounts to 34.86%. Last fiscal year, a return on equity of 8.05% was realized. Twelve trailing months earnings per share reached a value of $5.08. Last fiscal year, the company paid $0.98 in form of dividends to shareholders. The dividend growth amounted to 8.0%.

Here are the price ratios of the company: The P/E ratio is 12.17, Price/Sales 0.15 and Price/Book ratio 0.81. Dividend Yield: 1.77%. The beta ratio is 1.19.

8. DSW (NYSE:DSW) has a market capitalization of $2.68 billion. The company generates revenues of $2,024.33 million and has a net income of $200.34 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $226.60 million. Because of these figures, the EBITDA margin is 11.19% (operating margin 7.48% and the net profit margin finally 9.90%).

The total debt representing 0.00% of the company's assets and the total debt in relation to the equity amounts to 0.00%. Last fiscal year, a return on equity of 34.82% was realized. Twelve trailing months earnings per share reached a value of $6.11. Last fiscal year, the company paid $2.30 in form of dividends to shareholders. The dividend growth amounted to 20.0%.

Here are the price ratios of the company: The P/E ratio is 10.02, Price/Sales 1.32 and Price/Book ratio 3.37. Dividend Yield: 1.18%. The beta ratio is 1.42.

9. W.R. Berkley (NYSE:WRB) has a market capitalization of $5.38 billion. The company generates revenues of $5,155.98 million and has a net income of $394.73 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,187.10 million. Because of these figures, the EBITDA margin is 42.42% (operating margin 10.05% and the net profit margin finally 7.66%).

The total debt representing 9.43% of the company's assets and the total debt in relation to the equity amounts to 43.50%. Last fiscal year, a return on equity of 10.24% was realized. Twelve trailing months earnings per share reached a value of $2.87. Last fiscal year, the company paid $0.31 in form of dividends to shareholders. The dividend growth amounted to 12.5%.

Here are the price ratios of the company: The P/E ratio is 13.56, Price/Sales 1.04 and Price/Book ratio 1.33. Dividend Yield: 0.93%. The beta ratio is 0.42.

10. Primerica (NYSE:PRI) has a market capitalization of $1.45 billion. The company generates revenues of $1,103.09 million and has a net income of $178.28 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $660.50 million. Because of these figures, the EBITDA margin is 59.88% (operating margin 25.01% and the net profit margin finally 16.16%).

The total debt representing 3.00% of the company's assets and the total debt in relation to the equity amounts to 21.09%. Last fiscal year, a return on equity of 12.10% was realized. Twelve trailing months earnings per share reached a value of $2.29. Last fiscal year, the company paid $0.10 in form of dividends to shareholders. The dividend growth amounted to 66.7%.

Here are the price ratios of the company: The P/E ratio is 10.55, Price/Sales 1.29 and Price/Book ratio 1.09. Dividend Yield: 0.84%. The beta ratio is not calculable.

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