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Dividend Challengers are stocks that have raised distributions to shareholders over a period of more than five consecutive years but less than ten years. Out there are 189 stocks with such an impressive divided growth history. In general, they have a high reliability but not all of them keep a high profitability. In an effort to find some stocks from this investment category with the best current profit situation, I screened all Dividend Challengers by the highest return on investment (over 25%). The return on investment is a capital efficiency ratio which measures the return of the invested capital. Ten stocks fulfilled the mentioned criteria. Here are the results sorted by dividend yield:

1. Alliance Holdings (AHGP) has a market capitalization of $2.29 billion. The company generates revenues of $1,843.20 million and has a net income of $386.34 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $570.24 million. Because of these figures, the EBITDA margin is 30.94% (operating margin 22.24% and the net profit margin finally 20.96%).

The total debt representing 40.77% of the company's assets and the total debt in relation to the equity amounts to 178.31%. Last fiscal year, a return on equity of 59.58% was realized. Twelve trailing months earnings per share reached a value of $3.54. Last fiscal year, the company paid $2.28 in form of dividends to shareholders. The company raised dividends over a period of 7 years and has a current ROI of 29.43%.

Here are the price ratios of the company: The P/E ratio is 10.80, Price/Sales 1.24 and Price/Book ratio 5.77. Dividend Yield: 6.98%. The beta ratio is 0.74.

2. Lorillard (LO) has a market capitalization of $16.32 billion. The company generates revenues of $6,466.00 million and has a net income of $1,116.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,929.00 million. Because of these figures, the EBITDA margin is 29.83% (operating margin 29.26% and the net profit margin finally 17.26%).

The total debt representing 86.27% of the company's assets. Twelve trailing months earnings per share reached a value of $8.00. Last fiscal year, the company paid $5.20 in form of dividends to shareholders. The company raised dividends over a period of 5 years and has a current ROI of 72.71%.

Here are the price ratios of the company: The P/E ratio is 15.63, Price/Sales 2.52 and the Price/Book ratio is not calculable. Dividend Yield: 4.96%. The beta ratio is 0.43.

3. Strayer Education (STRA) has a market capitalization of $1.06 billion. The company generates revenues of $627.43 million and has a net income of $106.04 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $200.67 million. Because of these figures, the EBITDA margin is 31.98% (operating margin 28.55% and the net profit margin finally 16.90%).

The total debt representing 50.84% of the company's assets and the total debt in relation to the equity amounts to 277.82%. Last fiscal year, a return on equity of 97.16% was realized. Twelve trailing months earnings per share reached a value of $8.11. Last fiscal year, the company paid $4.00 in form of dividends to shareholders. The company raised dividends over a period of 8 years and has a current ROI of 61.44%.

Here are the price ratios of the company: The P/E ratio is 10.98, Price/Sales 1.68 and Price/Book ratio 24.84. Dividend Yield: 4.49%. The beta ratio is 0.69.

4. Microsoft Corporation (MSFT) has a market capitalization of $246.48 billion. The company generates revenues of $69,943.00 million and has a net income of $23,150.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29,927.00 million. Because of these figures, the EBITDA margin is 42.79% (operating margin 38.83% and the net profit margin finally 33.10%).

The total debt representing 10.97% of the company's assets and the total debt in relation to the equity amounts to 20.88%. Last fiscal year, a return on equity of 44.84% was realized. Twelve trailing months earnings per share reached a value of $2.75. Last fiscal year, the company paid $0.64 in form of dividends to shareholders. The company raised dividends over a period of 7 years and has a current ROI of 27.87%.

Here are the price ratios of the company: The P/E ratio is 10.67, Price/Sales 3.52 and Price/Book ratio 4.31. Dividend Yield: 2.73%. The beta ratio is 1.01.

5. Accenture (ACN) has a market capitalization of $40.00 billion. The company generates revenues of $27,352.91 million and has a net income of $2,553.24 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,983.71 million. Because of these figures, the EBITDA margin is 14.56% (operating margin 12.69% and the net profit margin finally 9.33%).

The total debt representing 0.03% of the company's assets and the total debt in relation to the equity amounts to 0.11%. Last fiscal year, a return on equity of 67.84% was realized. Twelve trailing months earnings per share reached a value of $3.77. Last fiscal year, the company paid $0.90 in form of dividends to shareholders. The company raised dividends over a period of 6 years and has a current ROI of 38.55%.

Here are the price ratios of the company: The P/E ratio is 15.34, Price/Sales 1.49 and Price/Book ratio 10.30. Dividend Yield: 2.33%. The beta ratio is 0.84.

6. Dun & Bradstreet (DNB) has a market capitalization of $3.27 billion. The company generates revenues of $1,758.50 million and has a net income of $258.90 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $498.80 million. Because of these figures, the EBITDA margin is 28.37% (operating margin 23.75% and the net profit margin finally 14.72%).

The total debt representing 48.81% of the company's assets. Twelve trailing months earnings per share reached a value of $5.61. Last fiscal year, the company paid $1.44 in form of dividends to shareholders. The company raised dividends over a period of 6 years and has a current ROI of 28.97%.

Here are the price ratios of the company: The P/E ratio is 12.16, Price/Sales 1.86 and the Price/Book ratio is not calculable. Dividend Yield: 2.23%. The beta ratio is 0.64.

7. Cummins (CMI) has a market capitalization of $17.90 billion. The company generates revenues of $18,048.00 million and has a net income of $1,946.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,586.00 million. Because of these figures, the EBITDA margin is 14.33% (operating margin 14.85% and the net profit margin finally 10.78%).

The total debt representing 5.88% of the company's assets and the total debt in relation to the equity amounts to 12.49%. Last fiscal year, a return on equity of 36.37% was realized. Twelve trailing months earnings per share reached a value of $10.19. Last fiscal year, the company paid $1.32 in form of dividends to shareholders. The company raised dividends over a period of 6 years and has a current ROI of 27.26%.

Here are the price ratios of the company: The P/E ratio is 9.14, Price/Sales 0.99 and Price/Book ratio 3.26. Dividend Yield: 1.72%. The beta ratio is 1.99.

8. Epoch Holding (EPHC) has a market capitalization of $536.74 million. The company generates revenues of $70.60 million and has a net income of $21.57 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29.58 million. Because of these figures, the EBITDA margin is 41.91% (operating margin 40.73% and the net profit margin finally 30.55%).

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 36.76% was realized. Twelve trailing months earnings per share reached a value of $0.92. Last fiscal year, the company paid $0.22 in form of dividends to shareholders. The company raised dividends over a period of 5 years and has a current ROI of 37.58%.

Here are the price ratios of the company: The P/E ratio is 24.73, Price/Sales 7.60 and Price/Book ratio 8.63. Dividend Yield: 1.40%. The beta ratio is 1.56.

9. Landstar System (LSTR) has a market capitalization of $2.42 billion. The company generates revenues of $2,650.79 million and has a net income of $112.94 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $209.06 million. Because of these figures, the EBITDA margin is 7.89% (operating margin 6.91% and the net profit margin finally 4.26%).

The total debt representing 19.57% of the company's assets and the total debt in relation to the equity amounts to 52.65%. Last fiscal year, a return on equity of 40.92% was realized. Twelve trailing months earnings per share reached a value of $2.52. Last fiscal year, the company paid $0.21 in form of dividends to shareholders. The company raised dividends over a period of 7 years and has a current ROI of 26.39%.

Here are the price ratios of the company: The P/E ratio is 20.42, Price/Sales 0.91 and Price/Book ratio 8.00. Dividend Yield: 0.43%. The beta ratio is 0.86.

10. Texas Pacific Land Trust (TPL) has a market capitalization of $522.76 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 $2.51. Last fiscal year, the company paid $0.21 in form of dividends to shareholders. The company raised dividends over a period of 9 years and has a current ROI of 106.43%.

Here are the price ratios of the company: The P/E ratio is 22.95, Price/Sales 15.24 and Price/Book ratio 25.75. Dividend Yield: 0.40%. The beta ratio is 1.08.

The average price to earnings ratio (P/E ratio) amounts to 15.29 and forward P/E ratio is 12.92. The dividend yield has a value of 2.77 percent. Price to book ratio is 10.44 and price to sales ratio 3.40. The operating margin amounts to 30.77 percent and the beta ratio is 0.99. The average stock has a ROI of 45.66 percent.

Source: 10 Dividend Challengers With Strongest Profitability