Dividend Champions with very low debt to equity ratios originally published at "long-term-investments.blogspot.com". Safe stocks have a higher priority for me. I believe that I don't need a bigger return when I try to avoid the real big risks from investing. Every cent I don't lose with my current holdings is also a cent that I don't need to earn with other stocks.
A real problem that affects the stock price is the debt situation. While everybody is only talking about growth and future potential, I do look at these ratios and the possibilities to repay the debt. Remember, you are a shareholder and get your dividends after loan repayments and interests.
Debt overloaded stocks have the problems that they need decades to reduce this debt if they are working in a non growing industry. A stock with a bigger cash amount on banks is in my view better. The company has more possibilities to grow and if they don't find a solution for the money, the can repurchase own shares or increase the current dividend.
Today, I want to screen some of the best dividend growth stocks with a very long dividend growth history by the lowest leverage ratio. I selected 109 Dividend Champions by a debt to equity ratio of less than 0.1. Thirteen stocks remain of which seven have a buy or better ratio.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 21.39 and forward P/E ratio is 17.46. The dividend yield has a value of 2.41 percent. Price to book ratio is 3.09 and price to sales ratio 2.30. The operating margin amounts to 16.94 percent and the beta ratio is 0.82. Stocks from the list have an average debt to equity ratio of 0.04.
Related stock ticker symbols:
MCY, BWL-A, CVX, ADP, XOM, TROW, LANC, HRL, GRC, RAVN, TR, CLC, HP