Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!