20 Most Profitable Dividend Aristocrats By Margins
Dividend Aristocrats with highest operating margins originally published at "long-term-investments.blogspot.com". Dividend Aristocrats are some of the best dividend growth stocks with a proven dividend hike series of more than 25 years. But if you are a fundamental investor, you also look for a strength business. Margins are a good indicator for a healthy business.
The margins are important for investors. They show if a company is getting stronger or even weaker within its business area. A very high margin shows that the company has products with a big customer satisfaction and desire. Clients need those products and they pay a high price because they can't find a better provider.
Sometimes margins are very high due to one-off effects. Basic material companies benefitted from high raw commodity prices. They are in a one-off situation which can also keep up for years.
Today I like to look at the Dividend Aristocrats list and show you the most profitable companies, measured by the highest operating margin. The index has 54 constituents and the top 20 stocks have a margin between 16 and 45 percent. That's well above the index average. 14 of the results have a current buy or better rating.
Here is the full table with some fundamentals:
20 Most Profitable Dividend Aristocrats....
Take a closer look at the full list. The average P/E ratio amounts to 18.47 and forward P/E ratio is 15.69. The dividend yield has a value of 2.40 percent. Price to book ratio is 5.46 and price to sales ratio 3.36. The operating margin amounts to 24.03 percent and the beta ratio is 0.83. Stocks from the list have an average debt to equity ratio of 0.72.
Related stock ticker symbols:
TROW, HCP, BEN, MCD, MHP, MDT, SIAL, BCR, KO, MMM, CL, BDX, ADP, JNJ, ED, CVX, PG, AFL, ITW, CB
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