Dividend Aristocrats With Low Debt To Equity Ratios Researched By "long-term-investments.blogspot.com". Dividend growth depends on the total amount of debt which the company has outstanding. The higher the debt level, the higher the risk for a dividend cut.
An important ratio to judge the financial balance sheet health of a stock is the debt to equity ratio. The figure shows how many percent of the equity is covered by debt. A ratio below one is often acceptable if the cash flow is strong enough. However, I screened the investment category "Dividend Aristocrats" (stocks with more than 25 years in consecutive dividend hikes, selected by Standard & Poor's) by companies with low debt to equity ratios of less than 0.3. Twelve companies fulfilled these criteria of which seven are currently recommended to buy.
Here is the full table with some fundamentals:
Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 16.48 and forward P/E ratio is 14.40. The dividend yield has a value of 2.58 percent. Price to book ratio is 2.90 and price to sales ratio 1.94. The operating margin amounts to 17.48 percent and the beta ratio is 0.92.
Related stock ticker symbols:
CINF, JNJ, GPC, WAG, AFL, ADP, XOM, CB, TROW, HRL, GWW, BEN