The best growing services dividend stocks originally published at "long-term-investments.blogspot.com". The services sector is still an attractive investment field. I also have invested some money into stocks from the sector. I talk about Wal-Mart and Walt Disney.
The whole sector has 844 companies listed of which 350 pay dividends. The total market capitalization of all services stocks combined is USD 58.896 trillion. An average stock from the sector has a P/E ratio of 24.94 and yields at 1.66 percent.
I personally don't like services stocks because of the low margin business. I love stocks with big margins and strong competitive advantages. High margins also show that the company owns and distributes products that are unique. Apple has really huge margins because they have created a unique product that people love and they are willing to pay nearly every price for it.
It sounds a little bit easy but the Apple story is much more complicated and is also a product of excellent brand marketing. I personally will never buy Apple shares because of the fast product cycle. If you lose your consumer focus, you are off the battle.
However, out there are some services stocks with a strong consumer loyalty and huge growth potential which is still attractive for many investors. Think about the payment provider MasterCard and Visa.
Today I want to highlight some of the best yielding services dividend stocks with a double-digit growth, expected for the next five years.
There are nearly 200 companies - wow, the services sector is full of growth. So, I focus on large capitalized stocks with the highest yield. Below is a small list of the 20 best results. Railroads are my favorites due to the expected shale gas boom and the cheap valuation.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 17.11 and forward P/E ratio is 13.29. The dividend yield has a value of 2.30 percent. Price to book ratio is 3.86 and price to sales ratio 1.54. The operating margin amounts to 14.76 percent and the beta ratio is 1.20. Stocks from the list have an average debt to equity ratio of 0.98.
Related stock ticker symbols:
NSC, UPS, WAG, CSX, CCL, TWC, CAH, CUK, MHP, TGT, LTD, FIS, YUM, UNP, HOT, M, TWX, TYC, JWN, VIAB