Investing in dividend stocks can be likened to having a wardrobe that consists of basic colors and classic styles. They both provide comfort, predictability, and longevity when carefully selected. To find dividend stocks that will produce additional income for the duration, it is key to begin with those that are moderate to high yielders. Other characteristics of dividend stocks that will be able to maintain or improve their yields are those that have projected EPS growth rates above 25% for the coming year, and those that have not carelessly utilized debt for funding. If you a dividend investor on the hunt for dividends with attractive yields that look well-suited for expansion, then you will like the list below.
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.
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.
We first looked for dividend stocks. We then looked for businesses that have maintained a sound long-term capital structure (Long Term D/E Ratio<.1). We then screened for businesses with estimated high growth, with 1-year projected EPS growth above 25%. We did not screen out any market caps or sectors.
Do you think these stocks should be priced higher? Use this list as a starting point for your own analysis.
1) TESSCO Technologies Inc. (TESS)
|Long Term Debt/Equity Ratio||0.03|
|1-Year Projected Earnings Per Share Growth Rate||35.32%|
TESSCO Technologies Incorporated provides products and value chain solutions to organizations for building, operating, and maintaining wireless broadband systems primarily in the United States. It offers base infrastructure products, including base station antennas, cable and transmission lines, small towers, lightning protection devices, connectors, power systems, miscellaneous hardware, and mobile antennas to build, repair, and upgrade wireless telecommunications; and connector installation, custom jumper assembly, site kitting, and logistics integration services communications equipment. The company was founded in 1982 and is headquartered in Hunt Valley, Maryland.
2) GAIN Capital Holdings, Inc. (GCAP)
|Industry||Investment Brokerage - National|
|Long Term Debt/Equity Ratio||0.00|
|1-Year Projected Earnings Per Share Growth Rate||56.25%|
GAIN Capital Holdings, Inc., through its subsidiaries, provides online trading services worldwide. It specializes in over-the-counter markets, including spot foreign exchange and precious metals, as well as contracts-for-difference. GAIN Capital Holdings, Inc. was founded in 1999 and is headquartered in Bedminster, New Jersey.
3) James Hardie Industries SE (JHX)
|Long Term Debt/Equity Ratio||0.00|
|1-Year Projected Earnings Per Share Growth Rate||36.05%|
James Hardie Industries SE, together with its subsidiaries, manufactures and sells fiber cement products for interior and exterior building construction applications primarily in the United States, Canada, Australia, New Zealand, the Philippines, and Europe. Its products principally include fiber cement interior linings, exterior siding products, and related accessories products. The company was formerly known as James Hardie Industries N.V. and changed its name to James Hardie Industries SE in February 2010. James Hardie Industries SE was founded in 1888 and is headquartered in Dublin, the Republic of Ireland.
4) Oiltanking Partners, L.P. (OILT)
|Industry||Oil & Gas Pipelines|
|Long Term Debt/Equity Ratio||0.09|
|1-Year Projected Earnings Per Share Growth Rate||46.07%|
Oiltanking Partners, L.P. provides storage, terminaling, and transportation services for third-party companies engaged in the production, distribution, and marketing of crude oil, refined petroleum products, and liquefied petroleum gas. The company was founded in 2011 and is headquartered in Houston, Texas. Oiltanking Partners, L.P. is a subsidiary of Oiltanking Holding Americas, Inc.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 10/12/2012.