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13 Dividend Growth Stocks With Very Little Debt

|Includes:Automatic Data Processing, Inc. (ADP), AFL, BMI, CLC, CVX, HCC, INTC, SEIC, TR, UGI, UMBF, WEYS, XOM

The goal of dividend investing is to find and buy dividend growth stocks that will continue to raise their dividends. To pay and raise its dividend a company must generate sufficient free cash flow. However, it is not enough to just generate the cash, it has to be available for dividend payments. Many companies generate significant free cash flow, but often that cash is already spoken for in the form of debt obligations.

This week I am screening my database for low debt-to-total-capital stocks. Debt includes both long-term and short-term debt. Total capital is a combination of debt and shareholders equity. When you divide debt by total capital a desirable rate is something less than 35%, but I will consider rates up to 50% on a short-term basis. Obviously, this is not a buy list but a potential idea list that will require additional due diligence.

Below are 13 stocks with debt that have a low debt-to-total-capital ratio:

Stocks: ADP, TR, CLC, AFL, WEYS, UMBF, INTC, BMI, SEIC, HCC, XOM, UGI, CVX