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20 Cheapest Financial Dividend Stocks

Published 05/10/2013, 07:48 AM
Updated 07/09/2023, 06:31 AM

Dividends are good but they are better when the company is cheaply priced. This month, I started a screen serial of the cheapest stocks from several major sectors. Today, I observe financial stocks with a large market capitalization (over USD 10 billion) and a positive dividend yield.

The top 20 results are valuated between 6.9 and 9.6 of expected earnings. Despite the financial recovery and the ongoing crises, nearly all of the results have an expected five year earnings growth close to the 10 percent mark.

Two of the results have a high yield and 18 are currently recommended to buy or even better.

AFLAC (AFL) has a market capitalization of $25.56 billion. The company employs 8,673 people, generates revenue of $25.364 billion and has a net income of $2.866 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.747 billion. The EBITDA margin is 22.66 percent (the operating margin is 16.96 percent and the net profit margin 11.30 percent).

  • Financial Analysis: The total debt represents 3.32 percent of the company’s assets and the total debt in relation to the equity amounts to 27.24 percent. Due to the financial situation, a return on equity of 19.82 percent was realized. Twelve trailing months earnings per share reached a value of $6.33. Last fiscal year, the company paid $1.34 in the form of dividends to shareholders.
  • Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.66, the P/S ratio is 1.03 and the P/B ratio is finally 1.64. The dividend yield amounts to 2.50 percent and the beta ratio has a value of 1.87.
Long-Term Stock Price
Long-Term Dividend Payment History
Long-Term Dividend Yield History
Prudential Financial (PRU) has a market capitalization of $30.53 billion. The company employs 48,498 people, generates revenue of $84.815 billion and has a net income of $472.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $978.00 million. The EBITDA margin is 1.15 percent (the operating margin is 0.80 percent and the net profit margin 0.56 percent).
  • Financial Analysis: The total debt represents 4.06 percent of the company’s assets and the total debt in relation to the equity amounts to 74.63 percent. Due to the financial situation, a return on equity of 1.23 percent was realized. Twelve trailing months earnings per share reached a value of $1.41. Last fiscal year, the company paid $1.60 in the form of dividends to shareholders.
  • Market Valuation: Here are the price ratios of the company: The P/E ratio is 46.35, the P/S ratio is 0.36 and the P/B ratio is finally 0.80. The dividend yield amounts to 2.43 percent and the beta ratio has a value of 2.40.
Long-Term Stock Price
Long-Term Dividend Payment History
Long-Term Dividend Yield History
Allstate (ALL) has a market capitalization of $23.17 billion. The company employs 38,000 people, generates revenue of $33.315 billion and has a net income of $2.306 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.793 billion. The EBITDA margin is 23.39 percent (the operating margin is 9.87 percent and the net profit margin 6.92 percent).
  • Financial Analysis: The total debt represents 4.77 percent of the company’s assets and the total debt in relation to the equity amounts to 29.43 percent. Due to the financial situation, a return on equity of 11.86 percent was realized. Twelve trailing months earnings per share reached a value of $4.62. Last fiscal year, the company paid $0.88 in the form of dividends to shareholders.
  • Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.71, the P/S ratio is 0.70 and the P/B ratio is finally 1.16. The dividend yield amounts to 2.01 percent and the beta ratio has a value of 1.49.
Long-Term Stock Price
Long-Term Dividend Payment History
Long-Term Dividend Yield History
Take a closer look at the full list of the 20 cheapest financial stocks. The average P/E ratio amounts to 20.03 and forward P/E ratio is 8.40. The dividend yield has a value of 2.84 percent. Price to book ratio is 1.11 and price to sales ratio 2.12. The operating margin amounts to 16.10 percent and the beta ratio is 1.88. Stocks from the list have an average debt to equity ratio of 4.69.
Cheapest Financial Dividend Stocks
Related stock ticker symbols:
AEG, BCS, MET, DB, SHG, PRU, AGNC, BX, JPM, HIG, AFL, CM, COF, ITUB, CS,
C, BBVA, MS, DFS, ALL

Disclosure
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

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