The goal of dividend investing is to find and buy dividend growth stocks that will continue to raise their dividends. To pay and raise its dividend a company must generate sufficient free cash flow. However, it is not enough to just generate the cash, it has to be available for dividend payments. Many companies generate significant free cash flow, but often that cash is already spoken for in the form of debt obligations.
This week I am screening my database for low debt-to-total-capital stocks. Debt includes both long-term and short-term debt. Total capital is a combination of debt and shareholders equity. When you divide debt by total capital a desirable rate is something less than 35%, but I will consider rates up to 50% on a short-term basis. Obviously, this is not a buy list but a potential idea list that will require additional due diligence.
Below are 13 stocks with debt that have a low debt-to-total-capital ratio:
- 9.6% Chevron Corporation (CVX) | Yield: 3.0%
- 9.1% UGI Corporation (UGI) | Yield: 3.2%
- 9.0% Exxon Mobil Corporation (XOM) | Yield: 2.2%
- 8.4% HCC Insurance Holdings Inc. (HCC) | Yield: 1.8%
- 8.2% SEI Investments Corp. (SEI) | Yield: 0.9%
- 7.2% Badger Meter, Inc. (BMI) | Yield: 1.5%
- 4.1% Intel Corporation (INTC) | Yield: 3.5%
- 4.0% UMB Financial Corporation (UMBF) | Yield: 1.9%
- 2.7% Weyco Group, Inc. (WEYS) | Yield: 3.4%
- 3.0% AFLAC Incorporated (BPL) | Yield: 2.5%
- 2.1% Clarcor Inc. Comm (CLC) | Yield: 1.0%
- 1.2% Tootsie Roll Industries Inc. (TR) | Yield: 1.1%
- 0.6% Automatic Data Processing Inc. (ADP) | Yield: 2.6%
The data present above is in its raw form. Many of the companies I would disqualify due to a low yield. However some of the others may be worth a second look.
My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 200+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.
Full Disclosure: Long ADP, INTC. See a list of all my income holdings here.
- Don't Touch These 5 Dividend Stocks!
- 3 Dividend Stocks That I Will NEVER Lose Money On
- List of 195 Dividend Stocks Every Income Investor Should Know About
- These 11 Dividend Stocks Could Make You Wealthy
- 13 Dividend Stocks Headed In The Right Direction
Tags: [ADP] [TR] [CLC] [AFL] [WEYS] [UMBF] [INTC] [BMI] [SEIC] [HCC] [XOM] [UGI] [CVX]
Popular Posts - Last 7 days
At one time or another, we all have thought, 'If only knew this when I was younger.' I purchased my first dividend stock for income ...
Driven by computers that cost more than the average person will earn in their lifetime the investment markets move at light speed. To keep p...
Linked here is a detailed quantitative analysis of HCP, Inc. (HCP). Below are some highlights from the above linked analysis: Company Des...
Linked here is a detailed quantitative analysis of Genuine Parts Company (GPC). Below are some highlights from the above linked analysis: ...
Each Sunday I highlight any notable articles that I came across over the past week. Though I may not always agree with each of the articles ...
Linked here is a detailed quantitative analysis of Wal-Mart Stores, Inc. (WMT). Below are some highlights from the above linked analysis: ...
Presented below are are my Dividend Growth Stocks portfolio holdings. This is not a recommendation to buy these securities. I have classifi...
If you want to lower the risk of your income portfolio and position yourself to increase returns, you can not ignore asset allocation . Man...
The Fable of Two Mules Once there were two heavily-laden mules making a long journey together. One was carrying a load of salt and the othe...
Linked here is a detailed quantitative analysis of Colgate-Palmolive (CL). Below are some highlights from the above linked analysis: Comp...