As a dividend investor, are you looking for stocks that not offer moderate to high yields along with the possibility of substantial long-term growth? Today, we screened for dividend stocks with these traits, and honed our focus to only stocks that have been recently rated as "Buy" or "Strong Buy" by industry analysts. We came up with a short list with good potential.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long-term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for dividend stocks. From here, we then looked for companies with projected high growth, measured by five-year projected EPS growth above 25%. We then looked for companies that analysts rate as "Buy" (2 < mean recommendation < 3). We did not screen out any market caps or sectors.
Do you think these stocks deserve to grow higher? Use our list along with your own analysis.
1) Rockwood Holdings, Inc. (ROC)
Rockwood Holdings, Inc. has a Dividend Yield of 3.22%, a 5-Year Projected Earnings Per Share Growth Rate of 26.29%, and an Analysts' Rating of 2.10. The short interest was 1.51% as of July 22, 2012. Rockwood Holdings, Inc. develops, manufactures, and markets specialty chemicals and materials for industrial and commercial applications primarily in Germany, the United States, and Europe.
The company's specialty chemicals include lithium compounds and chemicals; metal surface treatment chemicals, including corrosion protection/prevention oils; natural and synthetic metal sulfides; and maintenance chemicals. Its specialty chemicals are use in automotive pre-coating metal treatment and car body pre-treatment; polymerization initiators for elastomers; steel and metal working; pharmaceutical synthesis and polymers in life sciences industry; batteries; and disc brakes, as well as for use in the aircraft industry.
2) Kinder Morgan, Inc. (KMI)
|Industry:||Oil & Gas Pipelines|
Kinder Morgan, Inc. has a Dividend Yield of 4.00%, a Payout Ratio of 73.37%, a 5-Year Projected Earnings Per Share Growth Rate of 42.11%, and an Analysts' Rating of 2.20. The short interest was 2.12% as of July 22, 2012. Kinder Morgan, Inc. owns and operates energy transportation and storage assets in the United States and Canada.
The company operates in six segments: Products Pipelines-KMP, Natural Gas PipelinesKMP, CO2KMP, TerminalsKMP, Kinder Morgan CanadaKMP, and NGPL PipeCo LLC. The Products PipelinesKMP segment delivers gasoline, diesel fuel, jet fuel, and natural gas liquids to various markets through approximately 8,400 miles of refined petroleum products pipelines; and operates approximately 60 associated product terminals and petroleum pipeline transmix processing facilities.
3) ArcelorMittal (MT)
|Industry:||Steel & Iron|
Arcelor Mittal has a Dividend Yield of 5.09%, a Payout Ratio of 96.73%, a 5-Year Projected Earnings Per Share Growth Rate of 25.45%, and an Analysts' Rating of 2.00. The short interest was 2.36% as of July 22, 2012. ArcelorMittal, together with its subsidiaries, operates as an integrated steel and mining company worldwide.
Its steel products include flat products, such as slabs; finished flat products, which include plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, and tinplate and color coated coils and sheets; semi-finished long products comprising blooms and billets; finished long products, including bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes. The company offers its steel products for steel-consuming industries, such as automotive, distribution and processing, appliance, engineering, pipes and tubes, packaging, construction, energy, and machinery industries.
*Company profiles were sourced from Finviz. Financial data was sourced from Google Finance and Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.