50 Best Dividend Growth Stocks In January 2013

Dividend growth can be a big wealth driver. But, if you buy a stock with a 2 percent yield you must know that this won't get you very far. When you have invest $1,000, your dividend income would only be $20. That's not much.

Dividend growth helps you to grow your passive income. Normally, a solid stock should double its dividend payments over ten years. This means that your yield on cost would rise to 4 percent.

I often had stocks in my portfolio that beat this growth rates. Sure they were more risky than stocks like Procter & Gamble (PG) or Coca Cola (KO) but they all had a margin of safety for me. My yield on cost was over 10 percent after 5 years.

Today we'll look at the 50 best dividend growth stocks from the last 30 days. There are some pretty good stocks with very good growth rates which indicate strong business health. The average dividend growth of the 50 stocks amounts to 68.40 percent. Remember, if you have such stocks, your yield on cost goes up over 10 percent in less than two years!

I personally have no stocks from the list. I don’t know why. Maybe there are too many financial and oil stocks. More than half of the results have a current buy or better rating.

Realty Income (O) has a market capitalization of $5.81 billion. The company employs 92 people, generates revenue of $421.06 million and has a net income of $151.14 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $383.44 million. The EBITDA margin is 91.07 percent (the operating margin is 36.24 percent and the net profit margin 35.89 percent).

Financial Analysis: The total debt represents 46.50 percent of the company’s assets and the total debt in relation to the equity amounts to 91.14 percent. Due to the financial situation, a return on equity of 7.41 percent was realized. Twelve trailing months earnings per share reached a value of $0.85. Last fiscal year, the company paid $1.74 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 51.20, the P/S ratio is 13.99 and the P/B ratio is finally 3.07. The dividend yield amounts to 4.92 percent and the beta ratio has a value of 0.76.






Wells Fargo (WFC) has a market capitalization of $185.74 billion. The company employs 265,000 people, generates revenue of $48.391 billion and has a net income of $19.368 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $33.579 billion. The EBITDA margin is 69.39 percent (the operating margin is 33.07 percent and the net profit margin 22.50 percent).

Financial Analysis: The total debt represents 12.97 percent of the company’s assets and the total debt in relation to the equity amounts to 117.14 percent. Due to the financial situation, a return on equity of 13.16 percent was realized. Twelve trailing months earnings per share reached a value of $3.36. 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 10.48, the P/S ratio is 2.15 and the P/B ratio is finally 1.28. The dividend yield amounts to 2.85 percent and the beta ratio has a value of 1.40.






Schlumberger (SLB) has a market capitalization of $106.14 billion. The company employs 113,000 people, generates revenue of $42.321 billion and has a net income of $5.468 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11.031 billion. The EBITDA margin is 26.07 percent (the operating margin is 16.99 percent and the net profit margin 12.92 percent).

Financial Analysis: The total debt represents 18.90 percent of the company’s assets and the total debt in relation to the equity amounts to 33.36 percent. Due to the financial situation, a return on equity of 16.45 percent was realized. Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, the company paid $1.10 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.70, the P/S ratio is 2.49 and the P/B ratio is finally 3.02. The dividend yield amounts to 1.58 percent and the beta ratio has a value of 1.38.






Agilent Technologies (A) has a market capitalization of $15.53 billion. The company employs 20,500 people, generates revenue of $6.858 billion and has a net income of $1.153 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.426 billion. The EBITDA margin is 20.79 percent (the operating margin is 16.32 percent and the net profit margin 16.81 percent).

Financial Analysis: The total debt represents 22.42 percent of the company’s assets and the total debt in relation to the equity amounts to 45.58 percent. Due to the financial situation, a return on equity of 24.30 percent was realized. Twelve trailing months earnings per share reached a value of $3.27. Last fiscal year, the company paid $0.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.67, the P/S ratio is 2.29 and the P/B ratio is finally 3.02. The dividend yield amounts to 1.06 percent and the beta ratio has a value of 1.53.






Take a closer look at the full list of the 50 top stocks with fastest dividend growth from last month. The average P/E ratio amounts to 17.21. The dividend yield has a value of 2.86 percent. Price to book ratio is 3.65 and price to sales ratio 3.50.

Here is the full table:




Related Stock Ticker:
AGCO, BPFH, FHN, TSBK, GEO, RF, A, HCLP, MSFG, DFSB, SJT, AYT, WNR, COBZ, EWBC,
MPX, FABK, PROV, MLHR, MOFG, BPT, FCCO, RES, SONA, MTR,A, AUNZ, O, FINL, MDH, CLP,
SXL, BBT, VLO, PCBK, ATR, WFC, SLB, WEC, CMA, ROL, ANCX, BLK, ARP, MBWM, COLB,
ONB, DCI, ATLS, KSU, HGT

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.