Everyone has their own method for assessing value and worth. With certain purchases, we may not be concerned about the long term, we just want the right price. For purchases that we want to hold onto for years, value can carry more weight than other considerations. For investments in stocks that provide dividends, most of us prefer those that will hold their value year after year and provide additional income. From this perspective, we gathered a list of moderate- to high-yield dividend stocks with strong earnings. Further, they all have sizable growth predictions for the near future. Take a look below to review the list of dividend stocks to see if they have what it takes to meet your standards.
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 Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability. Net Margin = Net Income/Total Revenue
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.
We first looked for dividend stocks. We next screened for businesses with estimated high-growth, with 1-year projected EPS growth above 25%. We then looked for businesses that have been able to retain strong profit margins on the bottom line (Net Margin [TTM]>10%)(1-year operating margin>15%). We did not screen out any market caps or sectors.
Do you think these stocks offer both value and growth? Use our list to help with your own analysis.
1) Tesoro Logistics LP (TLLP)
|Industry||Oil & Gas Pipelines|
|1-Year Projected Earnings Per Share Growth Rate||36.26%|
|Operating Profit Margin||44.80%|
Tesoro Logistics LP engages in the ownership, operation, development, and acquisition of crude oil and refined products logistics assets in the United States. The company is involved in the gathering, terminalling, transportation, and storage of crude oil and refined products. The company was founded in 2010 and is based in San Antonio, Texas. Tesoro Logistics LP is a subsidiary of Tesoro Corporation.
2) Gold Fields Ltd. (GFI)
|1-Year Projected Earnings Per Share Growth Rate||45.26%|
|Operating Profit Margin||25.90%|
Gold Fields Limited engages in the acquisition, exploration, development, and production of gold properties. It holds interests in eight operating mines in South Africa, Peru, Ghana, and Australia. As of February 27, 2012, the company had total attributable precious metal and gold equivalent mineral resources of 217.0 million ounces and mineral reserves of 80.6 million ounces. Gold Fields Limited was founded in 1968 and is based in Sandton, South Africa.
3) PacWest Bancorp (PACW)
|Industry||Regional - Pacific Banks|
|1-Year Projected Earnings Per Share Growth Rate||28.57%|
|Operating Profit Margin||29.20%|
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.
4) Oiltanking Partners, L.P. (OILT)
|Industry||Oil & Gas Pipelines|
|1-Year Projected Earnings Per Share Growth Rate||46.07%|
|Operating Profit Margin||42.67%|
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 operates a crude oil and refined petroleum products terminal on the Houston Ship Channel with an aggregate active storage capacity of approximately 11.7 million barrels (mmbbls); and Beaumont terminal on the Neches River with an aggregate active storage capacity of approximately 5.6 mmbbls, which serves as a regional strategic and trading hub for refined petroleum products for refineries located in the Gulf Coast region. The company was founded in 2011 and its headquarters is 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 11/07/2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.