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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

The 10 Most Deadly Diseases in the World Today

The 5 Most Expensive Luxury Motorhomes in the World

20 Largest Stock Exchanges in the World

6 Richest Painters In The World 2014

The 6 Countries with the Best Hospitals In The World

10 Largest Beer Brewing Companies in the World

The 10 Richest Fitness Gurus In the World to Pump You Up

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!