These 20 Dividend Champions Have The Highest Profitability On The Market

May 9th, 2013 by Dividend Yield
SIAL: Sigma-Aldrich logo
SIAL
Sigma-Aldrich

Submitted by Dividend Yield as part of our contributors program.

Dividend stocks from the services sector with very low forward P/E ratios originally published at “long-term-investments.blogspot.com“. Recently I made a screen of the most profitable stocks from the Dividend Aristocrats index. I thought that it makes sense to know what kind of stocks have the highest degree of profitability. The results were impressive and some of my readers liked the idea.

Today I like to screen my Dividend Champions database by the most profitable stocks, measured by the operating margin. Because of the higher amount of screening members – the Dividend Champions list is nearly twice as big as the Dividend Aristocrats index; the results show some fresh ideas.

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The 20 top stocks have a margin between 24.8 and 45.7 percent. Eleven of them are currently recommended to buy.

Here are my favorite stocks:
Sigma-Aldrich (SIAL) has a market capitalization of $9.57 billion. The company employs 9,000 people, generates revenue of $2,623.00 million and has a net income of $460.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $809.00 million. The EBITDA margin is 30.84 percent (the operating margin is 25.12 percent and the net profit margin 17.54 percent).

Financial Analysis: The total debt represents 17.88 percent of the company’s assets and the total debt in relation to the equity amounts to 26.83 percent. Due to the financial situation, a return on equity of 19.39 percent was realized. Twelve trailing months earnings per share reached a value of $3.82. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.88, the P/S ratio is 3.64 and the P/B ratio is finally 3.74. The dividend yield amounts to 1.09 percent and the beta ratio has a value of 0.94.

Helmerich & Payne (HP) has a market capitalization of $6.67 billion. The company employs 9,410 people, generates revenue of $3,151.80 million and has a net income of $573.61 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,277.92 million. The EBITDA margin is 40.55 percent (the operating margin is 28.86 percent and the net profit margin 18.20 percent).

Financial Analysis: The total debt represents 4.11 percent of the company’s assets and the total debt in relation to the equity amounts to 6.13 percent. Due to the financial situation, a return on equity of 16.08 percent was realized. Twelve trailing months earnings per share reached a value of $5.65. Last fiscal year, the company paid $0.28 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.10, the P/S ratio is 2.11 and the P/B ratio is finally 1.73. The dividend yield amounts to 0.96 percent and the beta ratio has a value of 1.26.

Franklin Resources (BEN) has a market capitalization of $34.11 billion. The company employs 8,700 people, generates revenue of $7,101.00 million and has a net income of $1,915.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,593.70 million. The EBITDA margin is 36.53 percent (the operating margin is 35.42 percent and the net profit margin 26.98 percent).

Financial Analysis: The total debt represents 18.83 percent of the company’s assets and the total debt in relation to the equity amounts to 30.18 percent. Due to the financial situation, a return on equity of 21.66 percent was realized. Twelve trailing months earnings per share reached a value of $9.52. Last fiscal year, the company paid $1.08 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.84, the P/S ratio is 4.75 and the P/B ratio is finally 3.66. The dividend yield amounts to 0.73 percent and the beta ratio has a value of 1.51.

Take a closer look at the full list of High Margin Dividend Champions. The average P/E ratio amounts to 19.97 and forward P/E ratio is 17.34. The dividend yield has a value of 2.60 percent. Price to book ratio is 4.59 and price to sales ratio 4.50. The operating margin amounts to 32.44 percent and the beta ratio is 0.94. Stocks from the list have an average debt to equity ratio of 0.92.

Selected Articles:
· 20 Most Profitable Dividend Aristocrats
· Best Dividend Paying Stock List As Of May 2013
· 20 Dividend Champions With Highest 10-Year Dividend Growth Rates
· 13 Dividend Champions With Very Low Debt To Equity Ratios
· 12 Cheap Dividend Champions With Double-Digit Earnings Growth

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