Dividend income growth stocks with high yields and low price-to-earnings ratios originally published at long-term-investments.blogspot.com. High yielding stocks in a low interest environment is the only solution to hedge your assets against inflation. But high yielding stocks are rare when the Fed keeps its leading interest rates below 1 percent and pull market loan rates via bond purchases to the ground. But the inflation risk is still aware.
I stopped purchasing stocks for my own accounts since the beginning of the year but equities are now more expensive. I don't believe that they are still cheap more fair valuated or slightly overpriced. It's very hard to discover good stocks with solid dividend growth and high yields. I talk about yields over 3 percent and not the big risk including stocks with yields far over 5 percent.
Today I would like to screen the High-Dividend Achievers Index by stocks with inflation adequate yields and low price-to-earnings ratios. I prefer a ratio of the forward P/E below 15. Only 17 of 50 index members fulfilled these criteria. You can find a detailed list of these stocks attached.
Two High-Yields are part of the results and five received a current buy or better rating. Banks and utilities are the dominating industries on the list.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 16.09 and forward P/E ratio is 13.32. The dividend yield has a value of 4.22 percent. Price to book ratio is 6.38 and price to sales ratio 1.84. The operating margin amounts to 22.13 percent and the beta ratio is 0.71. Stocks from the list have an average debt to equity ratio of 1.55.
Related Stock Ticker Symbols:
MO, T, PPL, SO, ORI, AVA, ED, SCG, PBI, COP, AROW, UVV, UNS, LMT, MDP, TMP, CTBI