Stocks that have a history of enhancing shareholder returns generally act as a hedge against economic uncertainty or stock market volatility.
Additionally, these stocks have superior fundamentals compared to other dividend paying stocks as dividend growth reflects a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. All these make dividend growth a quality and promising investment for the long term.
However, the long history of outperformance by dividend growth stocks compared with the broader stock market or any other dividend paying stocks does not necessarily mean that they have the highest yields.
Here are the screening parameters that could result in a winning dividend growth portfolio:
Lazard -- Yield: 3.70%
Lazard (NYSE:LAZ) employs 2,728 people, generates revenue of $2,404.77 million and has a net income of $992.93 million. The current market capitalization stands at $5.18 billion.Lazard’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $21.99 million. The EBITDA margin is 0.91% (the operating margin is -0.69% and the net profit margin 41.29%).
Financials: The total debt represents 22.30% of Lazard assets and the total debt in relation to the equity amounts to 76.01%. Due to the financial situation, a return on equity of 97.65% was realized by Lazard.
Twelve trailing months earnings per share reached a value of $3.14. Last fiscal year, Lazard paid $2.35 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.13, the P/S ratio is 2.21 and the P/B ratio is finally 3.92. The dividend yield amounts to 3.70%.
Stock Charts:
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| Long-Term Stock Price Chart of Lazard (LAZ) |
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| Long-Term Dividend Payment History of Lazard (LAZ) |
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| Long-Term Dividend Yield History of Lazard (LAZ) |
Lockheed Martin -- Yield: 2.89%
Lockheed Martin (NYSE:LMT) employs 126,000 people, generates revenue of $46,132.00 million and has a net income of $3,605.00 million. The current market capitalization stands at $73.61 billion.Lockheed Martin’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,221.00 million. The EBITDA margin is 13.49% (the operating margin is 11.78% and the net profit margin 7.81%).
Financials: The total debt represents 30.95% of Lockheed Martin assets and the total debt in relation to the equity amounts to 492.77%. Due to the financial situation, a return on equity of 110.97% was realized by Lockheed Martin.
Twelve trailing months earnings per share reached a value of $12.22. Last fiscal year, Lockheed Martin paid $6.15 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.50, the P/S ratio is 1.60 and the P/B ratio is finally 24.93. The dividend yield amounts to 2.89%.
Stock Charts:
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| Long-Term Stock Price Chart of Lockheed Martin (LMT) |
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| Long-Term Dividend Payment History of Lockheed Martin (LMT) |
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| Long-Term Dividend Yield History of Lockheed Martin (LMT) |
Johnson & Johnson -- Yield: 2.78%
Johnson & Johnson (NYSE:JNJ) employs 127,100 people, generates revenue of $70,074.00 million and has a net income of $15,409.00 million. The current market capitalization stands at $312.83 billion.Johnson & Johnson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22,855.00 million. The EBITDA margin is 32.62% (the operating margin is 24.50% and the net profit margin 21.99%).
Financials: The total debt represents 14.89% of Johnson & Johnson assets and the total debt in relation to the equity amounts to 27.91%. Due to the financial situation, a return on equity of 21.87% was realized by Johnson & Johnson.
Twelve trailing months earnings per share reached a value of $5.71. Last fiscal year, Johnson & Johnson paid $2.95 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.31, the P/S ratio is 4.46 and the P/B ratio is finally 4.45. The dividend yield amounts to 2.78%.
Stock Charts:
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| Long-Term Stock Price Chart of Johnson & Johnson (JNJ) |
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| Long-Term Dividend Payment History of Johnson & Johnson (JNJ) |
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| Long-Term Dividend Yield History of Johnson & Johnson (JNJ) |
Novo Nordisk -- Yield: 2.58%
Novo Nordisk (NYSE:NVO) employs 42,605 people, generates revenue of $15,293.61 million and has a net income of $4,939.78 million. The current market capitalization stands at $70.91 billion.Novo Nordisk’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,088.99 million. The EBITDA margin is 46.35% (the operating margin is 45.81% and the net profit margin 32.30%).
Financials: The total debt represents 1.17% of Novo Nordisk assets and the total debt in relation to the equity amounts to 2.28%. Due to the financial situation, a return on equity of 79.90% was realized by Novo Nordisk.
Twelve trailing months earnings per share reached a value of $2.09. Last fiscal year, Novo Nordisk paid $0.91 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.00, the P/S ratio is 4.67 and the P/B ratio is finally 13.70. The dividend yield amounts to 2.58%.
Stock Charts:
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| Long-Term Stock Price Chart of Novo Nordisk (NVO) |
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| Long-Term Dividend Payment History of Novo Nordisk (NVO) |
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| Long-Term Dividend Yield History of Novo Nordisk (NVO) |
Everest Re Group -- Yield: 2.31%
Everest Re Group (NYSE:RE) employs 1,207 people, generates revenue of $5,940.09 million and has a net income of $1,074.49 million. The current market capitalization stands at $8.72 billion.Everest Re Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,346.90 million. The EBITDA margin is 22.67% (the operating margin is 20.95% and the net profit margin 18.09%).
Financials: The total debt represents 3.08% of Everest Re Group assets and the total debt in relation to the equity amounts to 8.32%. Due to the financial situation, a return on equity of 12.85% was realized by Everest Re Group.
Twelve trailing months earnings per share reached a value of $23.14. Last fiscal year, Everest Re Group paid $4.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.22, the P/S ratio is 1.49 and the P/B ratio is finally 1.22. The dividend yield amounts to 2.31%.
Stock Charts:
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| Long-Term Stock Price Chart of Everest Re Group (RE) |
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| Long-Term Dividend Payment History of Everest Re Group (RE) |
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| Long-Term Dividend Yield History of Everest Re Group (RE) |
Thor Industries -- Yield: 1.29%
Thor Industries (NYSE:THO) employs 14,900 people, generates revenue of $4,582.11 million and has a net income of $258.02 million. The current market capitalization stands at $5.38 billion.Thor Industries’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $445.85 million. The EBITDA margin is 9.73% (the operating margin is 8.37% and the net profit margin 5.63%).
Financials: The total debt represents 15.48% of Thor Industries assets and the total debt in relation to the equity amounts to 28.45%. Due to the financial situation, a return on equity of 22.14% was realized by Thor Industries.
Twelve trailing months earnings per share reached a value of $5.43. Last fiscal year, Thor Industries paid $1.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.95, the P/S ratio is 1.18 and the P/B ratio is finally 4.25. The dividend yield amounts to 1.29%.
Stock Charts:
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| Long-Term Stock Price Chart of Thor Industries (THO) |
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| Long-Term Dividend Payment History of Thor Industries (THO) |
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| Long-Term Dividend Yield History of Thor Industries (THO) |
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