Services dividend stocks with high betas and big growth at low valuation originally published at long-term-investments.blogspot.com. Today I would like to go forward with my monthly screen serial about high beta dividend stocks. Beta is a financial stock market ratio that shows how much the performance of a stock differs from the performance of the overall market. Beta ratios over one mean that the stock is stronger correlated to the market. Shares of the company move stronger up and down.
In bullish markets, you can make a better performance if you have high beta stocks in your portfolio. Today I would like to show you which of the services dividend stocks have the highest betas. Because of the huge amount of results, I needed to implement additional criteria. All stocks should have a low valuation measured by a forward P/E under 15 at earnings per share growth rates for the next five years of more than 10 percent yearly. Not enough, all stocks must have a market valuation over USD 10 billion.
Eighteen stocks fulfilled the above mentioned criteria. Sixteen have a current buy or better rating. The disadvantage is that the best results are low yielders. The highest dividend yield amounts to 2.81 percent. Low yields don't mean low returns: The stocks generated a return between 8.94 percent and 76.75 percent since the beginning of the trading year.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 16.85 and forward P/E ratio is 12.99. The dividend yield has a value of 1.81 percent. Price to book ratio is 3.41 and price to sales ratio 1.43. The operating margin amounts to 15.21 percent and the beta ratio is 1.12. Stocks from the list have an average debt to equity ratio of 0.88.
Related Stock Ticker Symbols:
NSC, WAG, TGT, CAH, CSX, TWC, M, JWN, TWX, UNP, MGA, CNI, CVS, VIAB, GPS, DAL, MCK, FDX