Today I like to introduce some dividend growth stocks with the cheapest valuation on the S&P 500. Those stocks have a forward P/E of less than 15.
Buying cheap stocks doesn't mean that you could make a quick return. Mostly the cheapness has reasons which you need to discover.
Buying cheap stocks doesn't mean that you could make a quick return. Mostly the cheapness has reasons which you need to discover.
For the time being, there are only 26 solid stocks but many have a huge debt burden to wear. If we exclude those stocks by implementing a debt-to-equity limit of 0.5, the results shrink to 13 companies. The list is attached.
It's hard to find good growing stocks especially when the Fed offers money for free. But what should we do elsewhere? Compared to fixed income assets, equities are quiet cheap and they offer an inflation hedge.
Are you investing money into stocks too? Please share your thoughts related to my ideas here on my blog. Thank you so much.
#1 Franklin Resources (NYSE:BEN) has a market capitalization of $32.24 billion. The company employs 9,300 people, generates revenue of $8,491.40 million and has a net income of $2,411.70 million.
Franklin Resources’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,324.60 million. The EBITDA margin is 39.15 percent (the operating margin is 37.93 percent and the net profit margin 28.40 percent).
Financials: The total debt represents 13.14 percent of Franklin Resources’s assets and the total debt in relation to the equity amounts to 18.55 percent. Due to the financial situation, a return on equity of 21.89 percent was realized by Franklin Resources.
Twelve trailing months earnings per share reached a value of $3.79. Last fiscal year, Franklin Resources paid $0.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.66, the P/S ratio is 3.80 and the P/B ratio is finally 2.79. The dividend yield amounts to 1.16 percent and the beta ratio has a value of 1.65.
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| Long-Term Stock Price Chart Of Franklin Resources (BEN) |
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| Long-Term Dividend Payment History of Franklin Resources (BEN) |
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| Long-Term Dividend Yield History of Franklin Resources (BEN) |
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#2 Archer Daniels Midland (NYSE:ADM) has a market capitalization of $30.70 billion. The company employs 31,100 people, generates revenue of $89,804.00 million and has a net income of $1,354.00 million.
Archer Daniels Midland’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,039.00 million. The EBITDA margin is 3.38 percent (the operating margin is 2.08 percent and the net profit margin 1.51 percent).
Financials: The total debt represents 15.70 percent of Archer Daniels Midland’s assets and the total debt in relation to the equity amounts to 34.08 percent. Due to the financial situation, a return on equity of 6.87 percent was realized by Archer Daniels Midland.
Twelve trailing months earnings per share reached a value of $2.92. Last fiscal year, Archer Daniels Midland paid $0.76 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.33, the P/S ratio is 0.34 and the P/B ratio is finally 1.56. The dividend yield amounts to 2.01 percent and the beta ratio has a value of 0.84.
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| Long-Term Stock Price Chart Of Archer Daniels Midland (ADM) |
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| Long-Term Dividend Payment History of Archer Daniels Midland (ADM) |
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| Long-Term Dividend Yield History of Archer Daniels Midland (ADM) |
#3 QUALCOMM (NASDAQ:QCOM) has a market capitalization of $118.53 billion. The company employs 31,300 people, generates revenue of $26,487.00 million and has a net income of $7,534.00 million.
QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,008.00 million. The EBITDA margin is 34.01 percent (the operating margin is 27.84 percent and the net profit margin 28.44 percent).
Financials: The total debt represents 0.00 percent of QUALCOMM’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 20.03 percent was realized by QUALCOMM.
Twelve trailing months earnings per share reached a value of $4.40. Last fiscal year, QUALCOMM paid $1.54 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.20, the P/S ratio is 4.47 and the P/B ratio is finally 3.04. The dividend yield amounts to 2.36 percent and the beta ratio has a value of 1.10.
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| Long-Term Stock Price Chart Of QUALCOMM (QCOM) |
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| Long-Term Dividend Payment History of QUALCOMM (QCOM) |
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| Long-Term Dividend Yield History of QUALCOMM (QCOM) |
# 4 AFLAC (NYSE:AFL) has a market capitalization of $26.22 billion. The company employs 8,859 people, generates revenue of $24,138.00 million and has a net income of $3,158.00 million.
AFLAC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,451.00 million. The EBITDA margin is 26.73 percent (the operating margin is 21.17 percent and the net profit margin 13.08 percent).
Financials: The total debt represents 4.04 percent of AFLAC’s assets and the total debt in relation to the equity amounts to 33.50 percent. Due to the financial situation, a return on equity of 20.64 percent was realized by AFLAC.
Twelve trailing months earnings per share reached a value of $6.38. Last fiscal year, AFLAC paid $1.42 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.11, the P/S ratio is 1.09 and the P/B ratio is finally 1.83. The dividend yield amounts to 2.68 percent and the beta ratio has a value of 1.58.
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| Long-Term Stock Price Chart Of AFLAC (AFL) |
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| Long-Term Dividend Payment History of AFLAC (AFL) |
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| Long-Term Dividend Yield History of AFLAC (AFL) |
#5 Microsoft (NASDAQ:MSFT) has a market capitalization of $381.15 billion. The company employs 128,000 people, generates revenue of $86,833.00 million and has a net income of $22,074.00 million.
Microsoft’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $33,098.00 million. The EBITDA margin is 38.12 percent (the operating margin is 31.85 percent and the net profit margin 25.42 percent).
Financials: The total debt represents 13.14 percent of Microsoft’s assets and the total debt in relation to the equity amounts to 25.22 percent. Due to the financial situation, a return on equity of 26.17 percent was realized by Microsoft.
Twelve trailing months earnings per share reached a value of $2.55. Last fiscal year, Microsoft 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 18.11, the P/S ratio is 4.39 and the P/B ratio is finally 4.24. The dividend yield amounts to 2.68 percent and the beta ratio has a value of 0.97.
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| Long-Term Stock Price Chart Of Microsoft (MSFT) |
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| Long-Term Dividend Payment History of Microsoft (MSFT) |
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| Long-Term Dividend Yield History of Microsoft (MSFT) |
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| 13 Cheap S&P 500 Dividend Achievers (click to enlarge), Source: long-term-investments.blogspot.com |
*I am long MSFT, QCOM. 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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