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12 Of The Cheapest S&P 500 Dividend Stocks

Published 06/25/2012, 03:45 AM
Updated 07/09/2023, 06:31 AM
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The S&P 500 has over USD 5.58 trillion benchmarked, with index assets comprising approximately USD 1.31 trillion of this total. The index includes 500 leading companies in leading industries of the U.S. economy, capturing 75 percent coverage of U.S. equities. Many investment professionals use the index for their asset allocation.

In order to find the cheapest dividend stocks, I screened the index by companies with a P/S and P/B ratio of less than one and a current P/E ratio below 15. Twelve companies remained of which nine are recommended to buy.

Prudential Financial (NYSE:PRU) has a market capitalization of $22.08 billion. The company employs 50,104 people, generates revenues of $49,045.00 million and has a net income of $3,518.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,407.00 million. Because of these figures, the EBITDA margin is 11.02 percent (operating margin 10.43 percent and the net profit margin finally 7.17 percent).

Financial Analysis: The total debt representing 4.32 percent of the company’s assets and the total debt in relation to the equity amounts to 72.42 percent. Due to the financial situation, a return on equity of 10.29 percent was realized. Twelve trailing months earnings per share reached a value of $4.07. Last fiscal year, the company paid $1.45 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.56, P/S ratio 0.45 and P/B ratio 0.59. Dividend Yield: 3.10 percent. The beta ratio is 2.37.

Long-Term Stock History Chart Of Prudential Financ

Long-Term Dividends History of Prudential Financ... (PRU)

Long-Term Dividend Yield History of Prudential Financ... (NYSE PRU)
Hewlett-Packard (NYSE:HPQ) has a market capitalization of $40.17 billion. The company employs 349,600 people, generates revenues of $127,245.00 million and has a net income of $7,074.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14,661.00 million. Because of these figures, the EBITDA margin is 11.52 percent (operating margin 7.61 percent and the net profit margin finally 5.56 percent).

Financial Analysis: The total debt representing 23.65 percent of the company’s assets and the total debt in relation to the equity amounts to 79.31 percent. Due to the financial situation, a return on equity of 17.89 percent was realized. Twelve trailing months earnings per share reached a value of $2.58. Last fiscal year, the company paid $0.40 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.89, P/S ratio 0.31 and P/B ratio 1.05. Dividend Yield: 2.60 percent. The beta ratio is 1.07.

Long-Term Stock History Chart Of Hewlett-Packard C

Long-Term Dividends History of Hewlett-Packard C... (HPQ)

Long-Term Dividend Yield History of Hewlett-Packard C... (NYSE HPQ)
Metlife (NYSE:MET) has a market capitalization of $31.89 billion. The company employs 67,000 people, generates revenues of $70,262.00 million and has a net income of $6,951.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,437.00 million. Because of these figures, the EBITDA margin is 29.09 percent (operating margin 14.27 percent and the net profit margin finally 9.89 percent). 

Financial Analysis: The total debt representing 7.66 percent of the company’s assets and the total debt in relation to the equity amounts to 102.49 percent. Due to the financial situation, a return on equity of 12.35 percent was realized. Twelve trailing months earnings per share reached a value of $5.40. Last fiscal year, the company paid $0.74 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.56, P/S ratio 0.45 and P/B ratio 0.53. Dividend Yield: 2.49 percent. The beta ratio is 1.96.

Long-Term Stock History Chart Of Metlife Inc

Long-Term Dividends History of Metlife Inc (MET)

Long-Term Dividend Yield History of Metlife Inc (NYSE MET)
WellPoint (NYSE:WLP) has a market capitalization of $23.08 billion. The company employs 37,700 people, generates revenues of $60,710.70 million and has a net income of $2,646.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,723.30 million. Because of these figures, the EBITDA margin is 7.78 percent (operating margin 6.52 percent and the net profit margin finally 4.36 percent). 

Financial Analysis: The total debt representing 18.83 percent of the company’s assets and the total debt in relation to the equity amounts to 42.06 percent. Due to the financial situation, a return on equity of 11.24 percent was realized. Twelve trailing months earnings per share reached a value of $7.27. Last fiscal year, the company paid $1.00 in form of dividends to shareholders. 

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.60, P/S ratio 0.38 and P/B ratio 1.01. Dividend Yield: 1.66 percent. The beta ratio is 0.96.

Long-Term Stock History Chart Of WellPoint, Inc

Long-Term Dividends History of WellPoint, Inc. (WLP)

Long-Term Dividend Yield History of WellPoint, Inc. (NYSE WLP)
Take a closer look at the full table of the cheapest S&P 500 dividend stocks. The average price to earnings ratio (P/E ratio) amounts to 8.79 and forward P/E ratio is 6.50. The dividend yield has a value of 2.38 percent. Price to book ratio is 0.78 and price to sales ratio 0.44. The operating margin amounts to 8.52 percent and the beta ratio is 1.51.

Here is the full table with some fundamentals (TTM):

12 Of The Cheapest S&P 500 Dividend Stocks
Related stock ticker symbols:
GME, PRU, PFG, HPQ, VLO, MUR, MET, AIZ, XRX, CHK, WLP, HES

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