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.
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.
