Large capitalized Dividend Challengers with strong growth at a low valuation originally published at long-term-investments.blogspot.com. If you have read my blog for a longer time, you would have noticed that I often write about dividend growth stocks and dividends in general. One dividend growth category is the Dividend Challengers category. Those stocks have raised their dividend cash payments to shareholders over a period of more than 5 consecutive years but less than 10 years in a row.
Because of the rising market valuation, I wanted to know which of the Dividend Challengers are still fair or even cheap priced compared to its growth forecasts by analysts.
I selected all stocks from the dividend growth category with a market cap over $10 billion and a low forward P/E below 15. In addition, the expected earnings per share growth should be above 5 percent yearly. Exactly 20 companies fulfilled these criteria.
14 of the results have a current buy or better rating and five stocks yielding over the three percent mark.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 15.99 and forward P/E ratio is 13.02. The dividend yield has a value of 2.58 percent. Price to book ratio is 3.57 and price to sales ratio 1.82. The operating margin amounts to 19.35 percent and the beta ratio is 1.13. Stocks from the list have an average debt to equity ratio of 0.67.
Related Stock Ticker Symbols:
LO, RAI, INTC, PM, RTN, CAG, BAX, SNN, TRV, AMP, CSX, PFG, COH, CCE, CMI, UNP, KR, NOV, GPS, MCK