4 Top Dividend Stocks That Hedge Fund Managers Would Love

Page 1 of 2

Best Dividend Paying Stock Lists By Dividend Yield – Stock, Capital, Investment. At the beginning of each month I screen the market with my best dividend paying stock screening criteria which are listed below.

I believe that it makes sense to observe the market by good valuated long-term growth stocks. For sure many of the results are lucky strikes, companies that have had an extraordinary good financial strength and growth due to a fantastic business environment. But the developments are not sustainable.

But sometimes there are new ideas on my list like Herbalife Ltd. (NYSE:HLF) or recently the weapon maker Sturm & Ruger. Those were corporate stocks in special situations with a huge army of short sellers lead by investment guru’s like Bill Ackman.

Bill Ackman in front of Perishi

The best dividend paying stock list is a small compilation with seven tough investing criteria, summarized below. The list includes each month around 20 to 30 results. It’s a quick dividend list (from low-yield to high-yield paying stocks) of stocks with interesting performance and valuation figures. Stocks from that list are mid- and large caps (market capitalization of more than USD 1 billion) with double-digit long-term earnings growth rates. The companies are traded at AMEX, NYSE, NASDAQ and part of the Dow Jones, S&P 500 or Nasdaq Composite. The list is selected by the following criteria and sorted by dividend yield.

My Criteria to find the best dividend stock on the market

Market Capitalization: > 1 Billion
Price/Earnings Ratio: > 0 < 100
Dividend Yield: > 3 < 20
Return on Investment: > 10 < 100
Operating Margin: > 10 < 100
10 Year Revenue Growth: > 8 < 200
10 Year EPS Growth: > 10 < 100

28 companies are part of the best dividend paying stock list for October 2013. The top pick is still Southern Copper, a commodity based stock with a double-digit dividend yield. 8 additional stocks have a dividend yield over 5 percent and fourteen got a buy or better rating by brokerage firms.

Here are the 4 results with Low P/E’s at earnings growth expectations of more than 10 percent:

China Mobile Ltd. (ADR) (NYSE:CHL)
 has a market capitalization of $226.85 billion. The company employs 188,000 people, generates revenue of $91.585 billion and has a net income of $21.144 billion. China Mobile’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41.55 billion. The EBITDA margin is 45.37 percent (the operating margin is 26.86 percent and the net profit margin 23.09 percent).

Financial Analysis: The total debt represents 0.48 percent of China Mobile’s assets and the total debt in relation to the equity amounts to 0.70 percent. Due to the financial situation, a return on equity of 18.84 percent was realized by China Mobile. Twelve trailing months earnings per share reached a value of $5.23. Last fiscal year, China Mobile paid $2.79 in the form of dividends to shareholders. Forward P/E: 11.32 at 5-Year earnings forecasts of 24.30 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.79, the P/S ratio is 2.50 and the P/B ratio is finally 1.92. The dividend yield amounts to 3.96 percent and the beta ratio has a value of 0.30.

Vale SA (ADR) (NYSE:VALE) has a market capitalization of $80.44 billion. The company employs 70,785 people, generates revenue of $47.694 billion and has a net income of $6.255 billion. Vale’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18.892 billion. The EBITDA margin is 39.61 percent (the operating margin is 19.34 percent and the net profit margin 13.11 percent).

Financial Analysis: The total debt represents 24.49 percent of Vale’s assets and the total debt in relation to the equity amounts to 43.37 percent. Due to the financial situation, a return on equity of 9.33 percent was realized by Vale. Twelve trailing months earnings per share reached a value of $0.81. Last fiscal year, Vale paid $1.15 in the form of dividends to shareholders. Forward P/E: 7.72 at 5-Year earnings forecasts of 17.24 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.21, the P/S ratio is 1.74 and the P/B ratio is finally 1.11. The dividend yield amounts to 5.10 percent and the beta ratio has a value of 1.37.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!