Dividend Contenders with low P/E and beta ratios originally published at "long-term-investments.blogspot.com". Safety and growth is a good combination but hard to find.
Safe stocks don't exist because with your shares you are a part of the business and must carry all fluctuations. But there are more or less risky businesses.
Growth is your wealth driver. A growing business is a good business and makes you richer when your company employs more people and generates higher sales and incomes over a couple of years.
In order to realize a return you must care about the current price ratios. The price you pay for growth should be acceptable in order to make a good return. Normally you have to pay a higher P/E with bigger growth expectations.
Today I try to combine all three factors: Growth, Bargains and Safeness. I like to screen dividend growth stocks with 10 to 25 years of consecutive dividend growth by low P/E and beta ratios: The P/E should be under 15 and the beta ratio must below 0.5.
Twelve stocks fulfilled the mentioned criteria of which three have a buy or better rating. Insurer, banks and telecom stocks are main contributors to the screen. Somehow strange - How banks fundamentals have changed over the recent years. They show low debt figures and good dividends but the banks in my screen are very low capitalized and have a greater risk.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 12.07 and forward P/E ratio is 12.52. The dividend yield has a value of 3.35 percent. Price to book ratio is 1.26 and price to sales ratio 2.10. The operating margin amounts to 26.67 percent and the beta ratio is 0.28. Stocks from the list have an average debt to equity ratio of 0.45.
Related stock ticker symbols:
PPL, NTT, DCM, NWFL, LG, AROW, AUBN, LARK, SXL, HIFS, RNR, WRB