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12 Stock Ideas From The S&P High Yield Dividend Aristocrats Index

In a low interest environment, it's more important to catch a good yielding stock with a fair possibility of a solid capital gain in the mid-term.

Today I would like to screen the S&P High Yield Dividend Aristocrats Index by stocks with a P/E under 20 and a solid debt situation, measured by a debt-to-equity value of 0.5. I accept a higher valuation due to a better debt ratio; A good deal in my view.

Attached are the 12 best yielding results with a dividend yield above the 2 percent mark.

My favorites are Exxon Mobil, Genuine Parts and Walgreen but on the list are more interesting stocks. Take a look on the sheet and make your own advice...

3 top picks from the S&P High Yield Dividend Aristocrats Index...

Walgreen (NYSE:WAG) has a market capitalization of $57.35 billion. The company employs 173,000 people, generates revenue of $72.217 billion and has a net income of $2.45 billion. Walgreen’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.02 billion. The EBITDA margin is 6.95 percent (the operating margin is 5.46 percent and the net profit margin 3.39 percent).

Financial Analysis: The total debt represents 14.22 percent of Walgreen’s assets and the total debt in relation to the equity amounts to 25.94 percent. Due to the financial situation, a return on equity of 13.00 percent was realized by Walgreen. Twelve trailing months earnings per share reached a value of $2.85. Last fiscal year, Walgreen paid $1.14 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.18, the P/S ratio is 0.79 and the P/B ratio is finally 2.94. The dividend yield amounts to 2.09 percent and the beta ratio has a value of 1.29.


Long-Term Stock Price Chart Of Walgreen (WAG)
Long-Term Dividend Payment History of Walgreen (WAG)
Long-Term Dividend Yield History of Walgreen (WAG)

Exxon Mobil (NYSE:XOM) has a market capitalization of $439.17 billion. The company employs 76,900 people, generates revenue of $453.123 billion and has a net income of $47.68 billion. Exxon Mobil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $65.769 billion. The EBITDA margin is 14.51 percent (the operating margin is 11.01 percent and the net profit margin 10.52 percent).

Financial Analysis: The total debt represents 3.47 percent of Exxon Mobil’s assets and the total debt in relation to the equity amounts to 6.98 percent. Due to the financial situation, a return on equity of 28.03 percent was realized by Exxon Mobil. Twelve trailing months earnings per share reached a value of $7.65. Last fiscal year, Exxon Mobil paid $2.18 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.14, the P/S ratio is 0.97 and the P/B ratio is finally 2.73. The dividend yield amounts to 2.51 percent and the beta ratio has a value of 0.71.


Long-Term Stock Price Chart Of Exxon Mobil (XOM)
Long-Term Dividend Payment History of Exxon Mobil (XOM)
Long-Term Dividend Yield History of Exxon Mobil (XOM)

Genuine Parts Company (NYSE:GPC) has a market capitalization of $12.88 billion. The company employs 31,900 people, generates revenue of $13.013 billion and has a net income of $648.04 million. Genuine Parts Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.121 billion. The EBITDA margin is 8.62 percent (the operating margin is 7.86 percent and the net profit margin 4.98 percent).

Financial Analysis: The total debt represents 7.84 percent of Genuine Parts Company’s assets and the total debt in relation to the equity amounts to 17.80 percent. Due to the financial situation, a return on equity of 22.57 percent was realized by Genuine Parts Company. Twelve trailing months earnings per share reached a value of $4.46. Last fiscal year, Genuine Parts Company paid $1.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.73, the P/S ratio is 0.99 and the P/B ratio is finally 4.31. The dividend yield amounts to 2.58 percent and the beta ratio has a value of 0.79.


Long-Term Stock Price Chart Of Genuine Parts Company (GPC)
Long-Term Dividend Payment History of Genuine Parts Company (GPC)
Long-Term Dividend Yield History of Genuine Parts Company (GPC)


Take a closer look at the full list of 12 Stock Ideas From The S&P High Yield Dividend Aristocrats Index. The average P/E ratio amounts to 16.49 and forward P/E ratio is 15.09. The dividend yield has a value of 2.66 percent. Price to book ratio is 2.49 and price to sales ratio 1.47. The operating margin amounts to 14.14 percent and the beta ratio is 0.96. Stocks from the list have an average debt to equity ratio of 0.26.
Here is the full table with some fundamentals (TTM):
12 Stock Ideas From The S&P High Yield Dividend Aristocrats Index
(Click to enlarge)
Related Stock Ticker Symbols:
ORI, CVX, CINF, JNJ, GPC, XOM, GD, ADM, AFL, ABT, WAG, ITW
*I am long WAG. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.
For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

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