20 Of The Safest Dividend Champions originally appeard on long-term-investments. More and more people talk about an overvaluation of the market. Sure P/E ratios skyrocket within the past five years but earnings did also improve.
You might agree with me that the risk of a market correction is improving with rising stock prices. What investors like you and me need to do is to hedge their risks.
I personally look for low beta stocks. Those have a lower correlation to the overall market and should fall less. Below are 20 of the safest Dividend Champions by beta ratio.
I've created a detailed snapshot of my 4 favorites and attached the full list. Let's go forward...
#1 McDonald's Corporation (NYSE:MCD) has a market capitalization of $94.09 billion. The company employs 440,000 people, generates revenue of $28,105.70 million and has a net income of $5,585.90 million.
McDonald's Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,080.40 million. The EBITDA margin is 35.87 percent (the operating margin is 31.18 percent and the net profit margin 19.87 percent).
Financials: The total debt represents 38.58 percent of McDonald's Corporation’s assets and the total debt in relation to the equity amounts to 88.26 percent. Due to the financial situation, a return on equity of 35.69 percent was realized by McDonald's Corporation.
Twelve trailing months earnings per share reached a value of $5.09. Last fiscal year, McDonald's Corporation paid $3.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.99, the P/S ratio is 3.35 and the P/B ratio is finally 5.98. The dividend yield amounts to 3.52 percent and the beta ratio has a value of 0.33.
Long-Term Stock Price Chart Of McDonald's Corporation (MCD) |
Long-Term Dividend Payment History of McDonald's Corporation (MCD) |
Long-Term Dividend Yield History of McDonald's Corporation (MCD) |
Procter & Gamble (NYSE:PG) has a market capitalization of $239.41 billion. The company employs 118,000 people, generates revenue of $83,062.00 million and has a net income of $11,707.00 million.
Procter & Gamble’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19,201.00 million. The EBITDA margin is 23.12 percent (the operating margin is 18.41 percent and the net profit margin 14.09 percent).
Financials: The total debt represents 24.55 percent of Procter & Gamble’s assets and the total debt in relation to the equity amounts to 51.17 percent. Due to the financial situation, a return on equity of 16.75 percent was realized by Procter & Gamble.
Twelve trailing months earnings per share reached a value of $3.54. Last fiscal year, Procter & Gamble paid $2.45 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.03, the P/S ratio is 2.88 and the P/B ratio is finally 3.53. The dividend yield amounts to 2.91 percent and the beta ratio has a value of 0.37.
Long-Term Stock Price Chart Of Procter & Gamble (PG) |
Long-Term Dividend Payment History of Procter & Gamble (PG) |
Long-Term Dividend Yield History of Procter & Gamble (PG) |
Coca-Cola (NYSE:KO) has a market capitalization of $194.92 billion. The company employs 130,600 people, generates revenue of $46,854.00 million and has a net income of $8,626.00 million.
Coca-Cola’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,144.00 million. The EBITDA margin is 28.05 percent (the operating margin is 22.90 percent and the net profit margin 18.41 percent).
Financials: The total debt represents 41.17 percent of Coca-Cola’s assets and the total debt in relation to the equity amounts to 111.77 percent. Due to the financial situation, a return on equity of 26.03 percent was realized by Coca-Cola.
Twelve trailing months earnings per share reached a value of $1.80. Last fiscal year, Coca-Cola paid $1.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.69, the P/S ratio is 4.16 and the P/B ratio is finally 5.91. The dividend yield amounts to 2.76 percent and the beta ratio has a value of 0.47.
Long-Term Stock Price Chart Of Coca-Cola (KO) |
Long-Term Dividend Payment History of Coca-Cola (KO) |
Long-Term Dividend Yield History of Coca-Cola (KO) |
Johnson & Johnson (NYSE:JNJ) has a market capitalization of $301.91 billion. The company employs 128,100 people, generates revenue of $71,312.00 million and has a net income of $13,831.00 million.
Johnson & Johnson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $23,743.40 million. The EBITDA margin is 33.30 percent (the operating margin is 21.69 percent and the net profit margin 19.40 percent).
Financials: 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 $6.04. 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 17.86, the P/S ratio is 4.23 and the P/B ratio is finally 4.11. The dividend yield amounts to 2.59 percent and the beta ratio has a value of 0.56.
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) |
Wal-Mart Stores (NYSE:WMT) has a market capitalization of $272.79 billion. The company employs 2,200,000 people, generates revenue of $476,294.00 million and has a net income of $16,551.00 million.
Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $35,742.00 million. The EBITDA margin is 7.50 percent (the operating margin is 5.64 percent and the net profit margin 3.47 percent).
Financials: The total debt represents 27.66 percent of Wal-Mart Stores’s assets and the total debt in relation to the equity amounts to 74.28 percent. Due to the financial situation, a return on equity of 20.81 percent was realized by Wal-Mart Stores.
Twelve trailing months earnings per share reached a value of $4.76. Last fiscal year, Wal-Mart Stores paid $1.88 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.79, the P/S ratio is 0.57 and the P/B ratio is finally 3.59. The dividend yield amounts to 2.27 percent and the beta ratio has a value of 0.46.
Long-Term Stock Price Chart Of Wal-Mart Stores (WMT) |
Long-Term Dividend Payment History of Wal-Mart Stores (WMT) |
Long-Term Dividend Yield History of Wal-Mart Stores (WMT) |
20 Safe Haven Dividend Champions
Here is the rest of the safest Dividend Champions, sorted by beta ratio.The Safest Dividend Champions by Beta (click to enlarge), Source: Blog long-term-investments |
*I am long WMT, MCD, PG, KO. 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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