A good retirement portfolio is diversified and dividend-focused. Diversification is important financial defense, but dividends are your financial offense.
They compound on themselves because companies that pay dividends have an implied agreement with their shareholders that they’ll continue bumping them up. Not all do, of course – but I’ve identified five dividend growth stocks that you can bank on.
Today they yield an average 3.6% and each has not only a strong history of increasing dividends but also strong dividend coverage – which means their payouts (and stock prices) are likely to keep growing for the foreseeable future.
Now let’s get into these five dividend growers…
General Motors Company -- Yield: 5.14%
General Motors Company (NYSE:GM) employs 215,000 people, generates revenue of $152,356.00 million and has a net income of $9,615.00 million. The current market capitalization stands at $44.22 billion.General Motors Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,545.00 million. The EBITDA margin is 8.89% (the operating margin is 3.51% and the net profit margin 6.31%).
Financials: The total debt represents 32.47% of General Motors Company assets and the total debt in relation to the equity amounts to 158.29%. Due to the financial situation, a return on equity of 25.72% was realized by General Motors Company.
Twelve trailing months earnings per share reached a value of $6.67. Last fiscal year, General Motors Company paid $1.38 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.40, the P/S ratio is 0.30 and the P/B ratio is finally 1.11. The dividend yield amounts to 5.14%.
Stock Charts:
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| Long-Term Stock Price Chart of General Motors Company (GM) |
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| Long-Term Dividend Payment History of General Motors Company (GM) |
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| Long-Term Dividend Yield History of General Motors Company (GM) |
Target Corporation -- Yield: 3.50%
Target Corporation (NYSE:TGT) employs 341,000 people, generates revenue of $73,785.00 million and has a net income of $3,321.00 million. The current market capitalization stands at $40.12 billion.Target Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,124.00 million. The EBITDA margin is 9.66% (the operating margin is 7.49% and the net profit margin 4.50%).
Financials: The total debt represents 31.69% of Target Corporation assets and the total debt in relation to the equity amounts to 98.48%. Due to the financial situation, a return on equity of 24.64% was realized by Target Corporation.
Twelve trailing months earnings per share reached a value of $5.29. Last fiscal year, Target Corporation paid $2.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.80, the P/S ratio is 0.55 and the P/B ratio is finally 3.19. The dividend yield amounts to 3.50%.
Stock Charts:
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| Long-Term Stock Price Chart of Target Corporation (TGT) |
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| Long-Term Dividend Payment History of Target Corporation (TGT) |
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| Long-Term Dividend Yield History of Target Corporation (TGT) |
Pfizer -- Yield: 3.40%
Pfizer (NYSE:PFE) employs 97,900 people, generates revenue of $48,851.00 million and has a net income of $6,974.00 million. The current market capitalization stands at $216.73 billion.Pfizer’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,788.00 million. The EBITDA margin is 38.46% (the operating margin is 21.14% and the net profit margin 14.28%).
Financials: The total debt represents 23.24% of Pfizer assets and the total debt in relation to the equity amounts to 60.10%. Due to the financial situation, a return on equity of 10.22% was realized by Pfizer.
Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, Pfizer 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 28.94, the P/S ratio is 4.38 and the P/B ratio is finally 3.36. The dividend yield amounts to 3.40%.
Stock Charts:
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| Long-Term Stock Price Chart of Pfizer (PFE) |
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| Long-Term Dividend Payment History of Pfizer (PFE) |
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| Long-Term Dividend Yield History of Pfizer (PFE) |
Reynolds American -- Yield: 3.32%
Reynolds American (NYSE:RAI) employs 5,600 people, generates revenue of $10,675.00 million and has a net income of $3,253.00 million. The current market capitalization stands at $72.46 billion.Reynolds American’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,993.00 million. The EBITDA margin is 37.41% (the operating margin is 65.13% and the net profit margin 30.47%).
Financials: The total debt represents 32.78% of Reynolds American assets and the total debt in relation to the equity amounts to 95.59%. Due to the financial situation, a return on equity of 28.57% was realized by Reynolds American.
Twelve trailing months earnings per share reached a value of $4.84. Last fiscal year, Reynolds American paid $1.39 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.56, the P/S ratio is 6.76 and the P/B ratio is finally 3.96. The dividend yield amounts to 3.32%.
Stock Charts:
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| Long-Term Stock Price Chart of Reynolds American (RAI) |
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| Long-Term Dividend Payment History of Reynolds American (RAI) |
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| Long-Term Dividend Yield History of Reynolds American (RAI) |
Edison International -- Yield: 2.63%
Edison International (NYSE:EIX) employs 12,768 people, generates revenue of $11,524.00 million and has a net income of $1,082.00 million. The current market capitalization stands at $24.15 billion.Edison International’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,018.00 million. The EBITDA margin is 34.87% (the operating margin is 17.42% and the net profit margin 9.39%).
Financials: The total debt represents 23.76% of Edison International assets and the total debt in relation to the equity amounts to 89.29%. Due to the financial situation, a return on equity of 8.82% was realized by Edison International.
Twelve trailing months earnings per share reached a value of $2.91. Last fiscal year, Edison International paid $1.73 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.28, the P/S ratio is 2.06 and the P/B ratio is finally 2.09. The dividend yield amounts to 2.63%.
Stock Charts:
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| Long-Term Stock Price Chart of Edison International (EIX) |
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| Long-Term Dividend Payment History of Edison International (EIX) |
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| Long-Term Dividend Yield History of Edison International (EIX) |
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