Although investing in dividend stocks can be perceived as a slower route to building wealth, that isn't always the case. Especially when a company that offers dividends has strong earnings and does not appear to be slowing down. With this in mind, we searched for moderate to high yield dividend stocks. To add assurance that these dividend stocks will continue to provide attractive yields, we searched for two characteristics: strong profits and projected EPS growth rates above 25% for the coming year. When these traits are working in tandem, it often points to companies that have a keen eye for fiscal management and well prepared strategies to maintain growth. Take a look at the list of dividend stocks below to begin your own evaluation.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin is increasing over time this means that it's earning more per dollar of sales. Finding trends in the Operating Profit Margin helps investors identify companies that are improving profitability over time and managing the economic landscape better than competitors.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.
We first looked for dividend stocks. From here, we then looked for companies with projected high growth, measured by 1-year projected EPS growth above 25%. We then looked for businesses with strong profit margins (1-year operating margin>15%)(1-year fiscal EPS growth rate>10%). We did not screen out any market caps or sectors.
Do you think these stocks are undervalued? Use our list along with your own analysis.
1) Golar LNG Partners LP (GMLP)
|1-Year Projected Earnings Per Share Growth Rate||44.00%|
|Operating Profit Margin||63.64%|
|Earnings Per Share Growth Rate||10.16%|
Golar LNG Partners LP owns and operates floating storage and regasification units and liquefied natural gas carriers. Its fleet consists of two FSRUs and two LNG carriers. Golar GP LLC serves as the general partner of Golar LNG Partners LP. The company was founded in 2007 and is based in Hamilton, Bermuda. Golar LNG Partners LP is a subsidiary of Golar LNG Limited.
2) Capital Product Partners L.P. (CPLP)
|1-Year Projected Earnings Per Share Growth Rate||140.00%|
|Operating Profit Margin||70.46%|
|Earnings Per Share Growth Rate||234.25%|
Capital Product Partners L.P., a shipping company, provides seaborne transportation services of crude oil, refined petroleum products, edible oils, and soft chemicals. The company provides marine transportation services under short-term voyage charters and medium to long-term time and bareboat charters. Its vessels carry crude oil, and refined oil products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals comprising ethanol. Capital Product Partners L.P. was founded in 2007 and is headquartered in Piraeus, Greece.
3) Linn Energy, LLC (LINE)
|Industry||Independent Oil & Gas|
|1-Year Projected Earnings Per Share Growth Rate||31.93%|
|Operating Profit Margin||50.48%|
|Earnings Per Share Growth Rate||413.15%|
Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and gas properties. The company's properties are primarily located in the Mid-Continent, the Permian Basin, Michigan, California, and the Williston Basin in the United States. As of December 31, 2011, it had proved reserves of 3,370 billion cubic feet equivalent of oil and gas, and natural gas liquids, as well as operated 7,759 gross productive wells. The company was founded in 2003 and is headquartered in Houston, Texas.
4) PacWest Bancorp (PACW)
|Industry||Regional - Pacific Banks|
|1-Year Projected Earnings Per Share Growth Rate||27.89%|
|Operating Profit Margin||28.20%|
|Earnings Per Share Growth Rate||177.53%|
PacWest Bancorp operates as a bank holding company for Pacific Western Bank that provides commercial banking products and services to small to medium size businesses, and the owners and employees of those businesses primarily in Southern California. It accepts demand, money market, and time deposits; and originating loans, including commercial, real estate construction, real estate miniperm, SBA guaranteed, and consumer loans, as well as offers other business-oriented banking products. The company was formerly known as First Community Bancorp and changed its name to PacWest Bancorp in April 2008. PacWest Bancorp was founded in 1999 and is based in Los Angeles, California.
5) Vanguard Natural Resources, LLC (VNR)
|Industry||Oil & Gas Drilling & Exploration|
|1-Year Projected Earnings Per Share Growth Rate||34.51%|
|Operating Profit Margin||54.31%|
|Earnings Per Share Growth Rate||95.51%|
Vanguard Natural Resources, LLC, through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. It owns properties and oil and natural gas reserves primarily located in six operating areas: the Permian Basin in west Texas and New Mexico; the Big Horn Basin in Wyoming and Montana; south Texas; the Williston Basin in North Dakota and Montana; Mississippi; and the Arkoma Basin in Arkansas and Oklahoma. As of March 31, 2012, the company had total proved reserves of 71.9 million barrels of oil equivalent, as well as owned working interests in 1,459 net productive wells. Vanguard Natural Resources, LLC was founded in 2006 and is headquartered in Houston, Texas.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 10/09/2012.