25 Best Growth And Income Stocks For February 2013

Each month, I search for the best growth and income picks with attractive dividend payments and growth figures. I’ve tried to summarize some significant fundamentals in order to screen the capital markets for interesting investment opportunities.

These are my criteria:

Market Capitalization: > 1 Billion
Price/Earnings Ratio: > 0 < 100
Dividend Yield: > 3 < 20
Return on Investment: > 10 < 100
Operating Margin: > 10 < 100
10 Year Revenue Growth: > 8 < 200
10 Year EPS Growth: > 10 < 100

The results from the screen are below. There are some long-term growth candidates that are well known, as well as some new names on the list. These stocks are not typically Dividend Champions or stocks with a very long dividend growth history but they have managed stronger sales growth while providing income.

This month, 25 companies fulfilled my screening criteria of which six have a high yield.


Vale (VALE) has a market capitalization of $103.94 billion. The company employs 70,785 people, generates revenue of $58.990 billion and has a net income of $21.517 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34.234 billion. The EBITDA margin is 58.03 percent (the operating margin is 51.05 percent and the net profit margin 36.48 percent).

Financial Analysis: The total debt represents 19.04 percent of the company’s assets and the total debt in relation to the equity amounts to 31.53 percent. Due to the financial situation, a return on equity of 30.99 percent was realized. Twelve trailing months earnings per share reached a value of $2.47. Last fiscal year, the company paid $1.73 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.17, the P/S ratio is 1.75 and the P/B ratio is finally 1.28. The dividend yield amounts to 5.90 percent and the beta ratio has a value of 1.45.






Microsoft (MSFT) has a market capitalization of $229.93 billion. The company employs 94,000 people, generates revenue of $73.723 billion and has a net income of $16.978 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.819 billion. The EBITDA margin is 33.67 percent (the operating margin is 29.92 percent and the net profit margin 23.03 percent).

Financial Analysis: The total debt represents 9.85 percent of the company’s assets and the total debt in relation to the equity amounts to 18.00 percent. Due to the financial situation, a return on equity of 27.51 percent was realized. Twelve trailing months earnings per share reached a value of $1.82. 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 15.05, the P/S ratio is 3.16 and the P/B ratio is finally 3.52. The dividend yield amounts to 3.30 percent and the beta ratio has a value of 0.97.






Companhia de Bebidas das Americas (ABV) has a market capitalization of $147.12 billion. The company employs 46,503 people, generates revenue of $13.630 billion and has a net income of $4.381 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.588 billion. The EBITDA margin is 48.34 percent (the operating margin is 43.17 percent and the net profit margin 32.14 percent).

Financial Analysis: The total debt represents 8.92 percent of the company’s assets and the total debt in relation to the equity amounts to 16.07 percent. Due to the financial situation, a return on equity of 34.58 percent was realized. Twelve trailing months earnings per share reached a value of $1.57. Last fiscal year, the company paid $0.92 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.91, the P/S ratio is 10.57 and the P/B ratio is finally 11.40. The dividend yield amounts to 3.10 percent and the beta ratio has a value of 0.95.






Chevron Corporation (CVX) has a market capitalization of $225.37 billion. The company employs 61,000 people, generates revenue of $253.706 billion and has a net income of $27.008 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $60.545 billion. The EBITDA margin is 23.86 percent (the operating margin is 18.78 percent and the net profit margin 10.65 percent).

Financial Analysis: The total debt represents 4.85 percent of the company’s assets and the total debt in relation to the equity amounts to 8.36 percent. Due to the financial situation, a return on equity of 23.75 percent was realized. Twelve trailing months earnings per share reached a value of $12.19. Last fiscal year, the company paid $3.09 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.44, the P/S ratio is 0.90 and the P/B ratio is finally 1.90. The dividend yield amounts to 3.09 percent and the beta ratio has a value of 0.79.






Take a closer look at the full table of the best dividend paying stock list. The average price to earnings ratio (P/E ratio) amounts to 14.49 while the dividend yield has a value of 4.51 percent. Price to book ratio is 3.56 and price to sales ratio 2.87. The operating margin amounts to 27.39 percent. The earnings per share grew by 21.31 yearly over the past decade and sales by 19.69 percent.


Related Stock Ticker Symbols:
SCCO, MFA, ARLP, VALE, YZC, HEP, OKS, GRMN, MBT, TX, MCHP, MMP, STO, CHL, QSII, FCX, TLK, BBL, MSFT, HLF, HRS, ABV, CVX, IAG, GES

Disclosure: I am long HLF. 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.