Stocks from the S&P 500 High Yield Dividend Aristocrats with strong growth at low valuation originally published at long-term-investments.blogspot.com. Is there anybody who don't loves high dividend paying stocks with a long history of dividend hikes. I don't think so.
Standard & Poor's has created an index family with focus on dividend growth stocks. One member of the index family is the popular S&P 500 High Yield Dividend Aristocrats Index. Around 84 companies are part of the income product. The index is designed to measure the performance of companies within the S&P Composite 1500® that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 years.
Below is a small list of the cheapest stocks from the index with expected double-digit earnings per share growth for the next five years as well as a low forward P/E, fewer than 15. Only ten stocks fulfilled these criteria of which nine have a buy or better rating.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 18.40 and forward P/E ratio is 13.91. The dividend yield has a value of 1.86 percent. Price to book ratio is 4.87 and price to sales ratio 1.91. The operating margin amounts to 17.47 percent and the beta ratio is 1.12. Stocks from the list have an average debt to equity ratio of 1.03.
Related Stock Ticker Symbols:
ABBV, WAG, CAH, TGT, SWK, DOV, CSL, EGN, BEN, BCR