13 Cheap S&P 500 Dividend Achievers

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Includes: ADM, AFL, BEN, MSFT, QCOM
by: Dividend Yield

Today I'd like to introduce some dividend growth stocks with the cheapest valuation on the S&P 500. Those stocks have a forward P/E of less than 15.

Buying cheap stocks doesn't mean that you can make a quick return. They're usually cheap for a reason.

For the time being, there are only 26 solid stocks, but many have a huge debt burden. If we exclude those stocks by implementing a debt-to-equity limit of 0.5, the results shrink to 13 companies. The list is below.

Here are my 5 favorites, sorted from highest to lowest yield:

#1 Franklin Resources (NYSE:BEN) has a market capitalization of $32.24 billion. The company employs 9,300 people, generates revenue of $8,491.40 million and has a net income of $2,411.70 million.

Franklin Resources's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,324.60 million. The EBITDA margin is 39.15 percent (the operating margin is 37.93 percent and the net profit margin 28.40 percent).

Financials: The total debt represents 13.14 percent of Franklin Resources's assets and the total debt in relation to the equity amounts to 18.55 percent. Due to the financial situation, a return on equity of 21.89 percent was realized by Franklin Resources.

Twelve trailing months earnings per share reached a value of $3.79. Last fiscal year, Franklin Resources paid $0.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.66, the P/S ratio is 3.80 and the P/B ratio is finally 2.79. The dividend yield amounts to 1.16 percent and the beta ratio has a value of 1.65.

Long-Term Stock Price Chart Of Franklin Resources (BEN)
Long-Term Dividend Payment History of Franklin Resources (BEN)
Long-Term Dividend Yield History of Franklin Resources (BEN)

#2 Archer Daniels Midland (NYSE:ADM) has a market capitalization of $30.70 billion. The company employs 31,100 people, generates revenue of $89,804.00 million and has a net income of $1,354.00 million.

Archer Daniels Midland's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,039.00 million. The EBITDA margin is 3.38 percent (the operating margin is 2.08 percent and the net profit margin 1.51 percent).

Financials: The total debt represents 15.70 percent of Archer Daniels Midland's assets and the total debt in relation to the equity amounts to 34.08 percent. Due to the financial situation, a return on equity of 6.87 percent was realized by Archer Daniels Midland.

Twelve trailing months earnings per share reached a value of $2.92. Last fiscal year, Archer Daniels Midland paid $0.76 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.33, the P/S ratio is 0.34 and the P/B ratio is finally 1.56. The dividend yield amounts to 2.01 percent and the beta ratio has a value of 0.84.

Long-Term Stock Price Chart Of Archer Daniels Midland (ADM)
Long-Term Dividend Payment History of Archer Daniels Midland (ADM)
Long-Term Dividend Yield History of Archer Daniels Midland (ADM)

#3 QUALCOMM (NASDAQ:QCOM) has a market capitalization of $118.53 billion. The company employs 31,300 people, generates revenue of $26,487.00 million and has a net income of $7,534.00 million.

QUALCOMM's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,008.00 million. The EBITDA margin is 34.01 percent (the operating margin is 27.84 percent and the net profit margin 28.44 percent).

Financials: The total debt represents 0.00 percent of QUALCOMM's assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 20.03 percent was realized by QUALCOMM.

Twelve trailing months earnings per share reached a value of $4.40. Last fiscal year, QUALCOMM paid $1.54 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.20, the P/S ratio is 4.47 and the P/B ratio is finally 3.04. The dividend yield amounts to 2.36 percent and the beta ratio has a value of 1.10.

Long-Term Stock Price Chart Of QUALCOMM (QCOM)
Long-Term Dividend Payment History of QUALCOMM (QCOM)
Long-Term Dividend Yield History of QUALCOMM (QCOM)

# 4 AFLAC (NYSE:AFL) has a market capitalization of $26.22 billion. The company employs 8,859 people, generates revenue of $24,138.00 million and has a net income of $3,158.00 million.

AFLAC's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,451.00 million. The EBITDA margin is 26.73 percent (the operating margin is 21.17 percent and the net profit margin 13.08 percent).

Financials: The total debt represents 4.04 percent of AFLAC's assets and the total debt in relation to the equity amounts to 33.50 percent. Due to the financial situation, a return on equity of 20.64 percent was realized by AFLAC.

Twelve trailing months earnings per share reached a value of $6.38. Last fiscal year, AFLAC paid $1.42 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.11, the P/S ratio is 1.09 and the P/B ratio is finally 1.83. The dividend yield amounts to 2.68 percent and the beta ratio has a value of 1.58.

Long-Term Stock Price Chart Of AFLAC (AFL)
Long-Term Dividend Payment History of AFLAC (AFL)
Long-Term Dividend Yield History of AFLAC (AFL)

#5 Microsoft (NASDAQ:MSFT) has a market capitalization of $381.15 billion. The company employs 128,000 people, generates revenue of $86,833.00 million and has a net income of $22,074.00 million.

Microsoft's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $33,098.00 million. The EBITDA margin is 38.12 percent (the operating margin is 31.85 percent and the net profit margin 25.42 percent).

Financials: The total debt represents 13.14 percent of Microsoft's assets and the total debt in relation to the equity amounts to 25.22 percent. Due to the financial situation, a return on equity of 26.17 percent was realized by Microsoft.

Twelve trailing months earnings per share reached a value of $2.55. Last fiscal year, Microsoft paid $1.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.11, the P/S ratio is 4.39 and the P/B ratio is finally 4.24. The dividend yield amounts to 2.68 percent and the beta ratio has a value of 0.97.

Long-Term Stock Price Chart Of Microsoft (MSFT)
Long-Term Dividend Payment History of Microsoft (MSFT)
Long-Term Dividend Yield History of Microsoft (MSFT)

13 Cheap S&P 500 Dividend Achievers (click to enlarge),

Source: long-term-investments.blogspot.com

Disclosure: I am long MSFT, QCOM. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.