Procter & Gamble (NYSE: PG) is a titan of the household products industry. The company is nearly 200 years old, worth more than $200 billion, and owns well-known brand names such as Tide, Gillette, and Pampers.
But the company has struggled recently. It's sold off secondary brands like Duracell, Cover Girl, and Zest to cut costs and focus on its core brands.
Moreover, the company's once-strong pipeline of innovation has yielded little success, and spending on R&D as a percentage of sales is lower than it's been in almost any point in the last 20 years.
The Crest-maker's sales have fallen as it has shed brands, struggled to grow domestic sales, and faced a strengthening dollar. The stock is up 12% this year, but the long term looks challenging.
Here are 20 similar stocks ....---> 20 Best Consumer Goods Stocks Beyond Procter & Gamble... [more]
If income is your investment objective, the deck is stacked against you, as interest rates remain velcroed to record lows. But there are attractive dividend stocks out there, provided you can commit for the long run.
The Dividend Growth stocks from 5 to 50 years of consecutive dividend growth are the most popular stocks within the long-term income asset class.
I often write about stocks with a longer investment period and one basic approach is to look at the past performance of a business in order to develop future prospects of the firm.
I believe that a good past performance tells us something about the quality of the business, the market barriers, brands and consumer loyalty. It also tells us something about volume products and the art of business, the magic formula about selling a product.
Today I like to introduce some of the highest yielding stocks with cheap price mutiples from the Dividend Challengers list. Each of the stocks has increased dividends by more than 5 years in a row.
These are the best dogs from the Dividend Challengers list... -> 20 Cheap Dividend Challenger Dogs With Yields Up To 11.79%... [more]
The Dividend Aristocrats are a group S&P 500 that have each paid increasing dividends for 25+ consecutive years.
We are talking a lot of the best dividend paying stocks and trying to find the best investment ideas for the years to come.
But what kind of investments worked in the past? For sure, each of the Dividend Aristocrats have shown a great performance in recent years but if you put your chips on those stocks in 2009, which of them generated the best performance, better than the overall market and better than other long-term dividend growth stocks.
I will tell you the answer in this short article.
There are currently only 50 Dividend Aristocrats. What's important about the Dividend Aristocrats is how well they have performed. Not all Dividend Aristocrats are good investments, especially in today's overvalued market. Low interest rates have pushed up real asset values, especially dividend stocks. This makes finding high quality dividend growth stocks trading at reasonable prices more difficult.
Here are 12 stocks of the S&P Dividend Aristocrats Index with more than 400% return ranked by the higehest price development since 2009.
These are the results...
Leggett & Platt -- Yield: 2.75% [more]
Investing in companies returning cash to shareholders via a combination of buybacks and dividends has proven to be an effective long-term strategy relative to the market and other uses of cash.
Since 1991, a sector-neutral basket of the S&P 500 stocks with the highest trailing combined dividend and buyback yields has returned an annualized 15.7% versus 13.8% for the top capex + R&D spenders and 12.8% for S&P 500. It seems this could be a great way to invest.
What is a stock purchase?
A stock repurchase occurs when a company asks stockholders to tender their shares for repurchase by the company. This is an alternate way for a company to increase value for stockholders. First, a repurchase can be used to restructure the company's capital structure without increasing the company's debt load.
Additionally, rather than a company changing its dividend policy, it can offer value to its stockholders through stock repurchases, keeping in mind that capital gains taxes are lower than taxes on dividends.
Advantages of a Stock Repurchase
Many companies initiate a share repurchase at a price level that management deems a good entry point. This point tends to be when the stock is estimated to be undervalued. If a company knows its business and relative stock price well, would it purchase its stock price at a high level? The answer is no, leading investors to believe the management perceives its stock price to be at a low level.
Unlike a cash dividend, a stock repurchase gives the decision to the investor. A stockholder can choose to tender his shares for repurchase, accept the payment and pay the taxes. With a cash dividend, a stockholder has no choice but to accept the dividend and pay the taxes.
At times, there may be a block of shares from one or more large shareholders that could come into the market, but the timing may be unknown. This problem may actually keep potential stockholders away since they may be worried about a flood of shares coming onto the market and lessening the stock's value. A stock repurchase can be quite useful in this situation.
However, let's come back to the real facts from the market. Attached you will find 10 stocks with the highest buyback yield of the past twelve months. The yield starts at 14.9% and ends at nearly 40%. Great values.
Here they are sorted by yield...
Navient -- Yield: 4.82%Navient (NASDAQ:NAVI) employs 7,300 people, generates revenue of $4,295.00 million and has a net income of $996.00 million. The current market capitalization stands at $4.19 billion.
Navient’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,490.00 million. The EBITDA margin is 34.69% (the operating margin is 37.25% and the net profit margin 23.19%).
Financials: The total debt represents 95.00% of Navient assets and the total debt in relation to the equity amounts to 3,205.11%. Due to the financial situation, a return on equity of 24.37% was realized by Navient.
Twelve trailing months earnings per share reached a value of $2.33. Last fiscal year, Navient paid $0.64 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.88, the P/S ratio is 0.98 and the P/B ratio is finally 1.17. The dividend yield amounts to 4.82%. Check out more results here...10 Stocks With The Highest Buyback Yield.. [more]
Looking for some income in your portfolio? Even growth-oriented investors can appreciate dividend stocks and the payouts they provide, even if that cash is ultimately earmarked for the purchase of growth stocks.
With bonds still paying next to nothing despite the Federal Reserve’s plans to start ratcheting up interest rates, dividend stocks are the only viable way to drive cash flow at a level that at least keeps pace with inflation.
It’s not a look that should be taken lazily, mind you. Sometimes a dividend yield is high simply because a stock has fallen in anticipation that its dividend will soon be cut.
On the other hand, sometimes a yield is strong because the market proverbially threw the baby out with the bathwater. Even the names that have fallen due to fears of a reduced dividend, however, can sometimes make for worthy speculations.
The situation doesn’t become clear until a particular company is scrutinized. Whatever the case, to help investors get their search for income started, here’s a closer look at the 18 large caps with single-digit P/E multiples and dividend yields over 4 percent.
These are the results... -> 18 High Yielding Dividend Large Cap Stocks With Single-Digit P/E Ratios [more]