Dividend Champions with strong growth and cheap forward P/E ratios originally published at "long-term-investments.blogspot.com". Some of us like dividend growth and they want invest money into the best long-term growth picks. I also like to make money by holding a passive stake of a well managed company and see how they create more and more values over the time.
A great source for high-quality stocks are Dividend Champions. Those are stocks with a dividend growth history of 25 or more consecutive years. 105 companies have created such a fantastic trust relationship to their shareholders.
Today I want to highlight the best growth picks with acceptable price ratios. Sure, cheap stocks with high growth don't exist especially when you are looking for low risk stocks. Something must be wrong. But see this kind of screen as an informative tool with which you can adjust your own asset allocation and ask yourself if your current holdings with less growth and higher P/E are worth to buy.
Twelve Dividend Champions fulfilled my criteria of a low forward P/E of less than 15 at double-digit earnings per share forecast for the next five years. The best yielding pick is Walgreen, the leading drug store operator. Eleven of the results are currently recommended to buy.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 16.01 and forward P/E ratio is 12.78. The dividend yield has a value of 1.74 percent. Price to book ratio is 2.99 and price to sales ratio 1.57. The operating margin amounts to 12.47 percent and the beta ratio is 1.09. Stocks from the list have an average debt to equity ratio of 0.51.
Related stock ticker symbols:
WAG, VFC, TGT, BRC, MHP, DOV, PNR, FDO, EGN, CSL, BEN, SCL