High-Yield dividend growth stocks with low debt originally published at "long-term-investments.blogspot.com". I often tell that growth and income growth are two major items in wealth creating.
Another criterion is the debt level. A company with a indebtedness has much more possibilities to grow or to create something special. Companies with a huge debt load must create management teams to handle this debt and look for new finance rounds.
I love it when stocks have a low debt to equity ratio. But it's only an additional stone in a wall of corporate finance and valuation.
Today I like to highlight the highest dividend paying stocks (over five percent dividend yield) with more than five years of consecutive dividend growth and a debt to equity ratio of less than one. The ratio is not really low but it's ok for a higher yielding company in my view. What matters in this area is the expected growth. Growth destroys debt. A growing income makes it easier to pay back the loans.
Nineteen companies fulfilled these criteria of which seven have a buy or better rating. Oil and gas pipeline stocks and drilling companies are the dominating industries in this screen.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 22.45 and forward P/E ratio is 19.16. The dividend yield has a value of 7.0 percent. Price to book ratio is 2.07 and price to sales ratio 4.03. The operating margin amounts to 25.36 percent and the beta ratio is 0.78. Stocks from the list have an average debt to equity ratio of 0.56.
Related stock ticker symbols:
NMM, PNNT, CMLP, NS, AZN, TCAP, BWP, NSH, WPZ, MCY, TCP, JCS, SNH, EVEP, ORI, RAI, TLP, ODC, BDMS