critical financial information was printed daily in newspapers. Though many newspaper still print this information, most people find it easier (and faster) to get information on their stocks from financial websites. So back when financial information was a tedious and manual process what was considered relevant enough to warrant inclusion?
Obviously the reader would want basic information like the stock's ticker symbol, volume, closing price and possibly high and low price for the day or last 52 weeks. Dividend yield was another piece of useful information often presented. One of the more interesting pieces of information presented was the Price Earnings (P/E) Ratio.
The P/E Ratio is one of the oldest metrics used. It is calculated as the market value per share divided by earnings per share (EPS). A high P/E ratio infers that investors expect strong future earnings growth. Conversely, a low P/E suggests limited future growth. These companies with limited growth projects to consume resources have historically been in a position to return large sums of cash to their shareholders as dividends.
This week week, I screened my dividend growth stocks database for stocks with a single digit P/E/ Ratio and with a dividend yield above 3%. The results are presented below:
Microsoft Corporation (MSFT)
Yield: 3.1% | P/E: 9.46
Microsoft, the world's largest software company, develops PC software, including the Windows operating system and the Office application suite.
Southside Bancshares Inc. (SBSI)
Yield: 3.3% | P/E: 9.65
Southside Bancshares Inc. owns Southside Bank, which primarily provides financial services to individuals, businesses, municipal entities, and non-profit organizations.
Raytheon Company (RTN)
Yield: 3.6% | P/E: 9.95
Raytheon Company, the world's sixth largest military contractor, specializes in making high-tech missiles, advanced radar systems and sensors, defense electronics, and missile-defense systems.
ConocoPhillips Co. (COP)
Yield: 3.6% | P/E: 9.35
ConocoPhillips Co. was formed via the 2002 merger of Phillips Petroleum and Conoco, is the fourth largest integrated oil company in the world.
Lockheed Martin Corp. (LMT)
Yield: 4.9% | P/E: 9.53
Lockheed Martin Corp. is the world's largest military weapons manufacturer, and is also a significant supplier to NASA and other non-defense government agencies. LMT receives about 93% of its revenues from global defense sales.
Pitney Bowes Inc. (PBI)
Yield: 8.0% | P/E: 8.94
Pitney Bowes Inc. is the world's largest maker of mailing systems, and also provides production and document management equipment and facilities management services.
As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.
My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 210+ 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 LMT, COP, and MSFT in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.
- Inverted Yield On Cost Curve
- Are You Creating Your Greatest Missed Opportunity?
- The MMA Rate Mystery Solved
- There is Value to be Found in the P/B Ratio
- The Perfect Dividend Stock
Tags: [LMT] [COP] [MSFT] [PBI] [SBSI] [RTN]
Popular Posts - Last 7 days
In an utopian world, the perfect dividend stock would be one that is both high-yield and provide a high dividend growth rate. Its share pri...
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
There is perceived safety in size. Giant corporations aren't randomly grown. Instead, they are carefully built through superior manageme...
When selecting income investments, the three most important questions to answer are: 1.) Is the investment increasing its dividend each yea...
Linked here is a detailed quantitative analysis of General Mills, Inc. (GIS). Below are some highlights from the above linked analysis: C...
Each Sunday I highlight any notable articles that I came across over the past week, along with any Carnivals I participated in. For those re...
Linked here is a detailed quantitative analysis of Coca-Cola Company (KO). Below are some highlights from the above linked analysis: Comp...
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
When to buy a stock and at what price are very important decisions. However, serious investors will tell you the most important decision is ...
Investing in dividend growth stocks is a long-term proposition. One of the beauties of following a dividend growth strategy is that you d...