Long-Term dividend growth investors need to look at the expected earnings growth of a company. The idea is simple: A growing company will also raise dividends if they don't strengthen their dividend policy.
What you also need to do is to observe the current market price of the company. If you pay 20 times of actual sales, you must have a very fast growing and highly profitable busienss to achieve a solid return in the future.
Below, I've compiled 4 stocks with double digit earnings forecasts for the mid-term and solid valuation figures.
These are the results:
Cummins -- Yield: 2.22%
Cummins (NYSE:CMI) employs 54,600 people, generates revenue of $19,221.00 million and has a net income of $1,736.00 million. The current market capitalization stands at $25.45 billion.Cummins’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,393.00 million. The EBITDA margin is 12.45% (the operating margin is 12.30% and the net profit margin 9.03%).
Financials: The total debt represents 10.76% of Cummins assets and the total debt in relation to the equity amounts to 21.91%. Due to the financial situation, a return on equity of 21.64% was realized by Cummins.
Twelve trailing months earnings per share reached a value of $9.33. Last fiscal year, Cummins paid $2.81 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.06, the P/S ratio is 1.33 and the P/B ratio is finally 3.30. The dividend yield amounts to 2.22%.
Stock Charts:
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| Long-Term Stock Price Chart of Cummins (CMI) |
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| Long-Term Dividend Payment History of Cummins (CMI) |
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| Long-Term Dividend Yield History of Cummins (CMI) |
Union Pacific -- Yield: 2.14%
Union Pacific (NYSE:UNP) employs 48,830 people, generates revenue of $23,988.00 million and has a net income of $5,180.00 million. The current market capitalization stands at $89.95 billion.Union Pacific’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,657.00 million. The EBITDA margin is 44.43% (the operating margin is 36.49% and the net profit margin 21.59%).
Financials: The total debt represents 21.78% of Union Pacific assets and the total debt in relation to the equity amounts to 54.18%. Due to the financial situation, a return on equity of 24.43% was realized by Union Pacific.
Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, Union Pacific paid $1.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.49, the P/S ratio is 3.76 and the P/B ratio is finally 4.28. The dividend yield amounts to 2.14%.
Stock Charts:
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| Long-Term Stock Price Chart of Union Pacific (UNP) |
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| Long-Term Dividend Payment History of Union Pacific (UNP) |
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| Long-Term Dividend Yield History of Union Pacific (UNP) |
Johnson Controls Incorporation -- Yield: 2.02%
Johnson Controls Incorporation (NYSE:JCI) employs 168,000 people, generates revenue of $42,828.00 million and has a net income of $1,553.00 million. The current market capitalization stands at $33.55 billion.Johnson Controls Incorporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,257.00 million. The EBITDA margin is 7.60% (the operating margin is 4.75% and the net profit margin 3.63%).
Financials: The total debt represents 14.96% of Johnson Controls Incorporation assets and the total debt in relation to the equity amounts to 43.37%. Due to the financial situation, a return on equity of 12.13% was realized by Johnson Controls Incorporation.
Twelve trailing months earnings per share reached a value of $2.23. Last fiscal year, Johnson Controls Incorporation paid $0.88 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.11, the P/S ratio is 0.79 and the P/B ratio is finally 3.03. The dividend yield amounts to 2.02%.
Stock Charts:
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| Long-Term Stock Price Chart of Johnson Controls Incorporation (JCI) |
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| Long-Term Dividend Payment History of Johnson Controls Incorporation (JCI) |
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| Long-Term Dividend Yield History of Johnson Controls Incorporation (JCI) |
Gilead Sciences Incorporation -- Yield: 1.53%
Gilead Sciences Incorporation (NASDAQ:GILD) employs 7,000 people, generates revenue of $24,890.00 million and has a net income of $12,059.00 million. The current market capitalization stands at $161.53 billion.Gilead Sciences Incorporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,315.00 million. The EBITDA margin is 65.55% (the operating margin is 61.33% and the net profit margin 48.45%).
Financials: The total debt represents 35.78% of Gilead Sciences Incorporation assets and the total debt in relation to the equity amounts to 80.41%. Due to the financial situation, a return on equity of 90.32% was realized by Gilead Sciences Incorporation.
Twelve trailing months earnings per share reached a value of $8.80. Last fiscal year, Gilead Sciences Incorporation paid $0.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.77, the P/S ratio is 6.64 and the P/B ratio is finally 10.93. The dividend yield amounts to 1.53%.
Stock Charts:
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| Long-Term Stock Price Chart of Gilead Sciences Incorporation (GILD) |
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| Long-Term Dividend Payment History of Gilead Sciences Incorporation (GILD) |
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| Long-Term Dividend Yield History of Gilead Sciences Incorporation (GILD) |
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