20 Cheap Dividend Stocks With High Growth And Low Valuations

Today I'm focusing on the best class of dividend growth stocks, the Dividend Champions. Those stocks have raised dividends regularly over a period of more than 25 consecutive years. Exactly 105 companies fulfilled these criteria. Below is a list of 20 Dividend Champs at low P/E levels (under 15) with the highest earnings per share growth predicted for the next five years.

Only two companies have a yield over 3 percent and 13 are currently recommended to buy now.

3M (MMM) has a market capitalization of $65.99 billion. The company employs 84,000 people, generates revenue of $29.611 billion and has a net income of $4.357 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.414 billion. The EBITDA margin is 25.04 percent (the operating margin is 20.86 percent and the net profit margin 14.71 percent).

Financial Analysis: The total debt represents 16.34 percent of the company’s assets and the total debt in relation to the equity amounts to 33.50 percent. Due to the financial situation, a return on equity of 27.56 percent was realized. Twelve trailing months earnings per share reached a value of $6.25. Last fiscal year, the company paid $2.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.25, the P/S ratio is 2.26 and the P/B ratio is finally 4.30. The dividend yield amounts to 2.47 percent and the beta ratio has a value of 0.88.






Walgreen Company (WAG) has a market capitalization of $35.14 billion. The company employs 171,000 people, generates revenue of $71.633 billion and has a net income of $2.127 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.630 billion. The EBITDA margin is 6.46 percent (the operating margin is 4.84 percent and the net profit margin 2.97 percent).

Financial Analysis: The total debt represents 16.11 percent of the company’s assets and the total debt in relation to the equity amounts to 29.57 percent. Due to the financial situation, a return on equity of 12.86 percent was realized. Twelve trailing months earnings per share reached a value of $2.23. Last fiscal year, the company paid $0.95 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.67, the P/S ratio is 0.49 and the P/B ratio is finally 1.92. The dividend yield amounts to 2.96 percent and the beta ratio has a value of 0.99.






Illinois Tool Works (ITW) has a market capitalization of $28.92 billion. The company employs 65,000 people, generates revenue of $17.786 billion and has a net income of $2.017 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.320 billion. The EBITDA margin is 18.67 percent (the operating margin is 15.35 percent and the net profit margin 11.34 percent).

Financial Analysis: The total debt represents 22.19 percent of the company’s assets and the total debt in relation to the equity amounts to 39.83 percent. Due to the financial situation, a return on equity of 20.60 percent was realized. Twelve trailing months earnings per share reached a value of $4.10. Last fiscal year, the company paid $1.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.23, the P/S ratio is 1.63 and the P/B ratio is finally 3.01. The dividend yield amounts to 2.44 percent and the beta ratio has a value of 1.17.






Take a closer look at the full list of 20 cheap dividend growth stocks. The average P/E ratio amounts to 16.33 and forward P/E ratio is 12.89. The dividend yield has a value of 2.24 percent. Price to book ratio is 3.18 and price to sales ratio 1.58. The operating margin amounts to 14.62 percent and the beta ratio is 1.14. Stocks from the list have an average debt to equity ratio of 0.62.

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


Related stock ticker symbols:
CTBI, DBD, WAG, RPM, AFL, SWK, MMM, ITW, EV, ADM, TGT, VFC, BRC, DOV, MHP, FDO,
CSL, SCL, NDSN, BEN

*I am long WAG. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: 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.