After a modest year for stocks in 2015, we need to look for fresh investment ideas in 2016. To find some great dividend-stock ideas, we first looked for companies whose businesses seemed poised for decent sales and earnings growth, even in a still-challenging U.S. economy.
Next, we looked for dedication to rising dividend payments. Though many companies pledge periodic stock buybacks as a way to return capital to investors, dividend payments are commitments—and increasing that commitment says a lot about executives' confidence.
Finally, we sought stocks that appeared ready to deliver a good total return—meaning share-price appreciation plus dividend income. Investors who seek high yield alone often sacrifice share-price growth and dividend growth over time.
By screening the market with the above mentioned criteria, 8 stocks came on our watchlist.
Here are the results...
AbbVie -- Yield: 4.10%
AbbVie (NYSE:ABBV) employs 26,000 people, generates revenue of $19,960.00 million and has a net income of $1,774.00 million. The current market capitalization stands at $88.12 billion.AbbVie’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,549.00 million. The EBITDA margin is 22.79% (the operating margin is 17.09% and the net profit margin 8.89%).
Financials: The total debt represents 54.44% of AbbVie assets and the total debt in relation to the equity amounts to 859.76%. Due to the financial situation, a return on equity of 56.91% was realized by AbbVie.
Twelve trailing months earnings per share reached a value of $1.71. Last fiscal year, AbbVie paid $1.66 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 31.57, the P/S ratio is 4.56 and the P/B ratio is finally 50.84. The dividend yield amounts to 4.10%.
Stock Charts:
Long-Term Stock Price Chart of AbbVie (ABBV) |
Long-Term Dividend Payment History of AbbVie (ABBV) |
Long-Term Dividend Yield History of AbbVie (ABBV) |
WEC Energy Group -- Yield: 3.85%
WEC Energy Group (NYSE:WEC) employs 4,248 people, generates revenue of $4,997.10 million and has a net income of $588.30 million. The current market capitalization stands at $16.44 billion.WEC Energy Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,531.50 million. The EBITDA margin is 30.65% (the operating margin is 22.25% and the net profit margin 11.77%).
Financials: The total debt represents 34.48% of WEC Energy Group assets and the total debt in relation to the equity amounts to 117.48%. Due to the financial situation, a return on equity of 13.60% was realized by WEC Energy Group.
Twelve trailing months earnings per share reached a value of $2.32. Last fiscal year, WEC Energy Group paid $1.56 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.41, the P/S ratio is 3.25 and the P/B ratio is finally 2.63. The dividend yield amounts to 3.85%.
Stock Charts:
Long-Term Stock Price Chart of WEC Energy Group (WEC) |
Long-Term Dividend Payment History of WEC Energy Group (WEC) |
Long-Term Dividend Yield History of WEC Energy Group (WEC) |
Boeing -- Yield: 3.35%
Boeing (NYSE:BA) employs 165,500 people, generates revenue of $90,762.00 million and has a net income of $5,446.00 million. The current market capitalization stands at $87.27 billion.Boeing’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,837.00 million. The EBITDA margin is 9.74% (the operating margin is 8.23% and the net profit margin 6.00%).
Financials: The total debt represents 9.14% of Boeing assets and the total debt in relation to the equity amounts to 104.67%. Due to the financial situation, a return on equity of 46.22% was realized by Boeing.
Twelve trailing months earnings per share reached a value of $7.96. Last fiscal year, Boeing paid $3.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.36, the P/S ratio is 0.96 and the P/B ratio is finally 10.60. The dividend yield amounts to 3.35%.
Stock Charts:
Long-Term Stock Price Chart of Boeing (BA) |
Long-Term Dividend Payment History of Boeing (BA) |
Long-Term Dividend Yield History of Boeing (BA) |
JPMorgan Chase -- Yield: 2.99%
JPMorgan Chase (NYSE:JPM) employs 235,678 people, generates revenue of $51,531.00 million and has a net income of $21,762.00 million. The current market capitalization stands at $216.82 billion.JPMorgan Chase’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40,815.00 million. The EBITDA margin is 43.33% (the operating margin is 31.62% and the net profit margin 23.10%).
Financials: The total debt represents 21.98% of JPMorgan Chase assets and the total debt in relation to the equity amounts to 244.04%. Due to the financial situation, a return on equity of 9.76% was realized by JPMorgan Chase.
Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, JPMorgan Chase paid $1.58 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.03, the P/S ratio is 2.30 and the P/B ratio is finally 1.03. The dividend yield amounts to 2.99%.
Stock Charts:
Long-Term Stock Price Chart of JPMorgan Chase (JPM) |
Long-Term Dividend Payment History of JPMorgan Chase (JPM) |
Long-Term Dividend Yield History of JPMorgan Chase (JPM) |
Microsoft -- Yield: 2.75%
Microsoft (NASDAQ:MSFT) employs 118,000 people, generates revenue of $93,580.00 million and has a net income of $12,193.00 million. The current market capitalization stands at $418.51 billion.Microsoft’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34,129.00 million. The EBITDA margin is 36.47% (the operating margin is 19.21% and the net profit margin 13.03%).
Financials: The total debt represents 20.03% of Microsoft assets and the total debt in relation to the equity amounts to 44.07%. Due to the financial situation, a return on equity of 14.36% was realized by Microsoft.
Twelve trailing months earnings per share reached a value of $1.49. Last fiscal year, Microsoft paid $1.24 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 35.25, the P/S ratio is 4.47 and the P/B ratio is finally 5.25. The dividend yield amounts to 2.75%.
Stock Charts:
Long-Term Stock Price Chart of Microsoft (MSFT) |
Long-Term Dividend Payment History of Microsoft (MSFT) |
Long-Term Dividend Yield History of Microsoft (MSFT) |
Amgen -- Yield: 2.65%
Amgen (NASDAQ:AMGN) employs 17,900 people, generates revenue of $20,063.00 million and has a net income of $5,158.00 million. The current market capitalization stands at $113.72 billion.Amgen’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,660.00 million. The EBITDA margin is 43.16% (the operating margin is 30.86% and the net profit margin 25.71%).
Financials: The total debt represents 44.51% of Amgen assets and the total debt in relation to the equity amounts to 119.15%. Due to the financial situation, a return on equity of 21.55% was realized by Amgen.
Twelve trailing months earnings per share reached a value of $8.37. Last fiscal year, Amgen paid $2.44 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.53, the P/S ratio is 5.67 and the P/B ratio is finally 4.45. The dividend yield amounts to 2.65%.
Stock Charts:
Long-Term Stock Price Chart of Amgen (AMGN) |
Long-Term Dividend Payment History of Amgen (AMGN) |
Long-Term Dividend Yield History of Amgen (AMGN) |
Home Depot -- Yield: 1.90%
Home Depot (NYSE:HD) employs 371,000 people, generates revenue of $83,176.00 million and has a net income of $6,345.00 million. The current market capitalization stands at $159.41 billion.Home Depot’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,255.00 million. The EBITDA margin is 14.73% (the operating margin is 12.59% and the net profit margin 7.63%).
Financials: The total debt represents 43.05% of Home Depot assets and the total debt in relation to the equity amounts to 184.48%. Due to the financial situation, a return on equity of 58.09% was realized by Home Depot.
Twelve trailing months earnings per share reached a value of $5.34. Last fiscal year, Home Depot 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 23.53, the P/S ratio is 1.89 and the P/B ratio is finally 17.37. The dividend yield amounts to 1.90%.
Stock Charts:
Long-Term Stock Price Chart of Home Depot (HD) |
Long-Term Dividend Payment History of Home Depot (HD) |
Long-Term Dividend Yield History of Home Depot (HD) |
Comcast Corporation -- Yield: 1.83%
Comcast Corporation (NASDAQ:CMCSA) employs 139,000 people, generates revenue of $68,775.00 million and has a net income of $8,592.00 million. The current market capitalization stands at $134.54 billion.Comcast Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22,923.00 million. The EBITDA margin is 33.33% (the operating margin is 21.60% and the net profit margin 12.49%).
Financials: The total debt represents 30.27% of Comcast Corporation assets and the total debt in relation to the equity amounts to 91.51%. Due to the financial situation, a return on equity of 16.21% was realized by Comcast Corporation.
Twelve trailing months earnings per share reached a value of $3.19. Last fiscal year, Comcast 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 17.23, the P/S ratio is 1.95 and the P/B ratio is finally 2.64. The dividend yield amounts to 1.83%.
Stock Charts:
Long-Term Stock Price Chart of Comcast Corporation (CMCSA) |
Long-Term Dividend Payment History of Comcast Corporation (CMCSA) |
Long-Term Dividend Yield History of Comcast Corporation (CMCSA) |
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