DividendYields (< 20)

11 Dividend Challengers With Highest Dividend Payout Potential

August 15, 2012 – Comments (0) | RELATED TICKERS: WAG , COST , CVS

Dividend Challengers With Significant Payout Potential Researched By Dividend Yield - Stock, Capital, Investment. Dividend Challengers are stocks with a history of consecutive dividend hikes of more than 5 years but less than 10. Exactly 195 companies raised dividends over such a long history but the potential for additional increases is still high. I made a screen of the best yielding Dividend Challengers with the highest dividend payout potential. First, I selected all stocks with a debt to equity ratio of less than 0.5 and a current payout ratio below 20 percent. Second, the company needs to grow in earnings over the mid-term. Because of this, I decided to screen all stocks with 5-year earnings per share growth of at least 10 percent. Eleven companies remained of which nine are currently recommended to buy.

Here is the full table with some fundamentals:

11 Dividend Challengers With Highest Dividend Payout Potential....

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 6.40 and forward P/E ratio is 13.73. The dividend yield has a value of 1.15 percent. Price to book ratio is 3.13 and price to sales ratio 1.49. The operating margin amounts to 13.37 percent and the beta ratio is 1.18.

Related stock ticker symbols:

AIZ, CMI, CVS, NEU, COST, FLS, ALTR, FINL, LSTR, HEI, AAN

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