Every trade causes costs. I'm talking about taxes and transaction costs. You can adjust your portfolio risk with your trades but if you are right or wrong, it's in my view often hard to say. I have sold stocks many times and often they doubled or tenfold after I have decided to sell them; a bad choice from me. Recently, I wanted to sell 25 percent of my Mondelez stake because they got so big after the spin-off from Kraft Foods. The order was not executed because my limit was too high on the trading day, at USD 34. But because of my 70 percent gain, I needed to pay high taxes on my trade, a number that causes a potential 10 percent loss for the whole stake.
I believe that it makes more sense to buy high-quality stocks at fair prices and keep them for 20 years or more. Over this period of time, the stock should have paid your investment amount nearly completely back. No dream, just reality. Some stocks can pay you in 10 years, others need 50 years. The point is to find the good stocks that pay you.
Below are six stocks with over 10 years of consecutive dividend growth and solid debt and growth predictions.
Intel Corporation (NASDAQ:INTC) has a market capitalization of $130.92 billion. The company employs 106,300 people, generates revenue of $52.708 billion and has a net income of $9.620 billion. Intel Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20.563 billion. The EBITDA margin is 39.01 percent (the operating margin is 23.09 percent and the net profit margin 18.25 percent).
Intel Corporation (NASDAQ:INTC) has a market capitalization of $130.92 billion. The company employs 106,300 people, generates revenue of $52.708 billion and has a net income of $9.620 billion. Intel Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20.563 billion. The EBITDA margin is 39.01 percent (the operating margin is 23.09 percent and the net profit margin 18.25 percent).
Financial Analysis: The total debt represents 14.56 percent of Intel Corporation’s assets and the total debt in relation to the equity amounts to 23.08 percent. Due to the financial situation, a return on equity of 17.58 percent was realized by Intel Corporation. Twelve trailing months earnings per share reached a value of $1.86. Last fiscal year, Intel Corporation paid $0.90 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.13, the P/S ratio is 2.48 and the P/B ratio is finally 2.24. The dividend yield amounts to 3.42 percent and the beta ratio has a value of 1.03.
Long-Term Stock Price Chart Of Intel Corporation (INTC) |
Long-Term Dividend Payment History of Intel Corporation (INTC) |
Long-Term Dividend Yield History of Intel Corporation (INTC) |
Johnson & Johnson (NYSE:JNJ) has a market capitalization of $285.48 billion. The company employs 128,100 people, generates revenue of $71.312 billion and has a net income of $13.831 billion. Johnson & Johnson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $25.789 billion. The EBITDA margin is 36.16 percent (the operating margin is 21.69 percent and the net profit margin 19.40 percent).
Financial Analysis: The total debt represents 13.70 percent of Johnson & Johnson’s assets and the total debt in relation to the equity amounts to 24.55 percent. Due to the financial situation, a return on equity of 19.92 percent was realized by Johnson & Johnson. Twelve trailing months earnings per share reached a value of $5.23. Last fiscal year, Johnson & Johnson paid $2.59 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.29, the P/S ratio is 4.00 and the P/B ratio is finally 3.84. The dividend yield amounts to 2.77 percent and the beta ratio has a value of 0.58.
Long-Term Stock Price Chart Of Johnson & Johnson (JNJ) |
Long-Term Dividend Payment History of Johnson & Johnson (JNJ) |
Long-Term Dividend Yield History of Johnson & Johnson (JNJ) |
Genuine Parts Company (NYSE:GPC) has a market capitalization of $13.08 billion. The company employs 37,500 people, generates revenue of $14.077 billion and has a net income of $684.96 million. Genuine Parts Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,192.19 million. The EBITDA margin is 8.47 percent (the operating margin is 7.52 percent and the net profit margin 4.87 percent).
Financial Analysis: The total debt represents 10.32 percent of Genuine Parts Company’s assets and the total debt in relation to the equity amounts to 23.66 percent. Due to the financial situation, a return on equity of 21.58 percent was realized by Genuine Parts Company. Twelve trailing months earnings per share reached a value of $4.49. Last fiscal year, Genuine Parts Company paid $2.15 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.97, the P/S ratio is 0.93 and the P/B ratio is finally 3.91. The dividend yield amounts to 2.70 percent and the beta ratio has a value of 0.73.
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) |
General Dynamics (NYSE:GD) has a market capitalization of $38.67 billion. The company employs 96,000 people, generates revenue of $31.218 billion and has a net income of $2.486 billion. General Dynamics’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.241 billion. The EBITDA margin is 13.59 percent (the operating margin is 11.80 percent and the net profit margin 7.96 percent).
Financial Analysis: The total debt represents 11.03 percent of General Dynamics’s assets and the total debt in relation to the equity amounts to 26.96 percent. Due to the financial situation, a return on equity of 19.20 percent was realized by General Dynamics. Twelve trailing months earnings per share reached a value of $7.13. Last fiscal year, General Dynamics paid $2.24 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.83, the P/S ratio is 1.24 and the P/B ratio is finally 2.75. The dividend yield amounts to 2.20 percent and the beta ratio has a value of 1.09.
Long-Term Stock Price Chart Of General Dynamics (GD) |
Long-Term Dividend Payment History of General Dynamics (GD) |
Long-Term Dividend Yield History of General Dynamics (GD) |
T. Rowe Price Group (NASDAQ:TROW) has a market capitalization of $21.32 billion. The company employs 5,692 people, generates revenue of $3.484 billion and has a net income of $1.047 billion. T. Rowe Price Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.728 billion. The EBITDA margin is 49.61 percent (the operating margin is 47.00 percent and the net profit margin 30.07 percent).
Financial Analysis: The total debt represents 0.00 percent of T. Rowe Price Group’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 23.97 percent was realized by T. Rowe Price Group. Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, T. Rowe Price Group paid $1.52 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.73, the P/S ratio is 6.12 and the P/B ratio is finally 4.41. The dividend yield amounts to 2.17 percent and the beta ratio has a value of 1.33.
Long-Term Stock Price Chart Of T. Rowe Price Group (TROW) |
Long-Term Dividend Payment History of T. Rowe Price Group (TROW) |
Long-Term Dividend Yield History of T. Rowe Price Group (TROW) |
VF Corporation (NYSE:VFC) has a market capitalization of $26.58 billion. The company employs 59,000 people, generates revenue of $11.419 billion and has a net income of $1.210 billion. VF Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.871 billion. The EBITDA margin is 16.39 percent (the operating margin is 14.42 percent and the net profit margin 10.60 percent).
Financial Analysis: The total debt represents 14.06 percent of VF Corporation’s assets and the total debt in relation to the equity amounts to 23.87 percent. Due to the financial situation, a return on equity of 21.60 percent was realized by VF Corporation. Twelve trailing months earnings per share reached a value of $2.75. Last fiscal year, VF Corporation paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.50, the P/S ratio is 2.33 and the P/B ratio is finally 4.47. The dividend yield amounts to 1.70 percent and the beta ratio has a value of 0.98.
Long-Term Stock Price Chart Of VF Corporation (VFC) |
Long-Term Dividend Payment History of VF Corporation (VFC) |
Long-Term Dividend Yield History of VF Corporation (VFC) |
*I am long INTC, JNJ. 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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