6 Low-Debt Dividend Stocks Analysts Rate As Buy Or Better

by: ZetaKap

Investing in dividends that offer moderate to high yields is a path that many investors have found to be a standard approach to building wealth over time. To find stocks that provide reliable yields, today we screened for companies that have managed to hold down their debt. Minimal debt typically indicates a company has other key factors like profit and effective management in place. We further narrowed the list of dividend stocks to include those that have a recent 'Buy' or better rating from analysts. The list below provides you with a place to start your research process.

The Long Term Debt/Equity Ratio is a variation of the traditional debt-to-equity ratio; this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies that finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios.

We first looked for dividend stocks. From here, we then looked for companies that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). Next, we then screened for businesses that have maintained a sound long term capital structure (Long Term D/E Ratio<.1). We did not screen out any market caps or sectors.

Do you think these stocks have higher to rise? Please use our list to assist with your own analysis.

1) Canon Inc. (NYSE:CAJ)

Sector Consumer Goods
Industry Photographic Equipment & Supplies
Market Cap $45.79B
Beta 0.99

CAJ stock chart

Key Metrics

Dividend Yield 4.51%
Payout Ratio 56.37%
Analysts' Rating 2.50
Long Term Debt/Equity Ratio 0.00
Short Interest 0.21%

Canon Inc. engages in the manufacture and sale of network digital multifunction devices (MFDs), plain paper copying machines, laser printers, inkjet printers, cameras, and lithography equipment worldwide. It operates in three segments: Office Business unit, Consumer Business unit, and Industry and Others Business unit. The Office Business unit manufactures, markets, and services a range of monochrome network digital MFDs, color network digital MFDs, personal-use network digital MFDs, office copying machines, full-color copying machines, personal-use copying machines, laser printers, large format inkjet printers, and digital production printers.

2) McGrath Rentcorp (NASDAQ:MGRC)

Sector Services
Industry Rental & Leasing Services
Market Cap $633.62M
Beta 1.25

MGRC stock chart

Key Metrics

Dividend Yield 3.67%
Payout Ratio 46.75%
Analysts' Rating 2.50
Long Term Debt/Equity Ratio 0.00
Short Interest 6.79%

McGrath RentCorp, a diversified business to business rental company, engages in the rental and sale of relocatable modular buildings, electronic test equipment, and liquid and solid containment tanks and boxes primarily in the United States and Canada. It operates in four segments: Mobile Modular, TRS-RenTelco, Adler Tanks, and Enviroplex. The Mobile Modular segment rents modular buildings designed for use as classrooms, temporary offices adjacent to existing facilities, sales offices, construction field offices, restroom buildings, health care clinics, child care facilities, and office space; and portable storage containers.

3) Hancock Holding Co. (NASDAQ:HBHC)

Sector Financial
Industry Regional - Southeast Banks
Market Cap $2.62B
Beta 0.97

HBHC stock chart

Key Metrics

Dividend Yield 3.11%
Payout Ratio 76.15%
Analysts' Rating 2.30
Long Term Debt/Equity Ratio 0.00
Short Interest 4.09%

Hancock Holding Company, a financial holding company, provides financial and banking services in Mississippi, Louisiana, Alabama, Florida, and Texas. The company accepts various deposit products, including demand deposits, interest-bearing transaction accounts, time deposits, foreign branch deposits, NOW account balances, and money market accounts. Its loan portfolio comprises commercial, consumer, commercial leasing, mortgage, and real estate loans to consumers, and small and middle market businesses, as well as secured and unsecured loan products, including revolving credit facilities, and letters of credit. The company also offers various trust services that consist of investment management services on an agency basis; and trustee services for pension plans, profit sharing plans, corporate and municipal bond issues, living trusts, life insurance trusts, and various other types of trusts created by or for individuals, businesses, and charitable and religious organizations.

4) Molex Inc. (NASDAQ:MOLX)

Sector Technology
Industry Diversified Electronics
Market Cap $4.82B
Beta 1.63

MOLX stock chart

Key Metrics

Dividend Yield 3.23%
Payout Ratio 51.32%
Analysts' Rating 2.40
Long Term Debt/Equity Ratio 0.06
Short Interest 4.26%

Molex Incorporated, together with its subsidiaries, engages in the design, manufacture, and sale of electronic components worldwide. It provides micro-miniature connectors, SIM and SD card sockets, keypads, electromechanical subassemblies, internal antennas, mezzanine system, adapters, memory module sockets, and cable assemblies, as well as SC, SC/APC, and duplex connectors for the telecommunications market; and power, optical, and signal connectors and cables for end-to-end data transfer, linking disk drives, controllers, servers, switches, and storage enclosures for the info-tech market. The company also offers connectors for home and portable audio, digital still and video cameras, DVD players, recorders, and gaming machines, as well as devices that combine multiple functions to computer game makers. In addition, it provides network interface cards, software for industrial networks, cord sets, electrical solutions, and input/output connectors for industrial production equipment for use in factory automation, commercial construction, utility, petrochemical, and food and beverage industries; and unsealed connection systems, miniature waterproof connectors, sensor interconnects, and bulb sockets for use in the infotainment and navigation, powertrain, safety and chassis, and body electronics in the automotive market.

5) Destination Maternity Corporation (NASDAQ:DEST)

Sector Services
Industry Apparel Stores
Market Cap $240.66M
Beta 1.69

DEST stock chart

Key Metrics

Dividend Yield 3.89%
Payout Ratio 55.17%
Analysts' Rating 2.20
Long Term Debt/Equity Ratio 0.00
Short Interest 3.82%

Destination Maternity Corporation engages in the design and retail of maternity apparel. It offers casual and career wear, formal attire, lingerie, sportswear, and outerwear. As of September 30, 2011, the company operated 2,352 retail locations, including 658 stores in 50 states of the United States.

6) TrustCo Bank Corp. NY (NASDAQ:TRST)

Sector Financial
Industry Regional - Northeast Banks
Market Cap $533.78M
Beta 0.54

TRST stock chart

Key Metrics

Dividend Yield 4.61%
Payout Ratio 68.39%
Analysts' Rating 2.50
Long Term Debt/Equity Ratio 0.00
Short Interest 4.35%

TrustCo Bank Corp NY operates as the holding company for Trustco Bank that provides general banking services to individuals, partnerships, and corporations. The company is primarily involved in accepting deposits, and making loans and investments. It also serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as the trustee for various types of employee benefit plans, and corporate pension and profit sharing trusts. In addition, the company operates a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/22/2012.

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

Business relationship disclosure: This article was prepared for ZetaKap Media by one of our full-time analysts. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

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