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Best 19 Highest Sector Growth Consumer Dividend Stocks

Published 02/18/2013, 01:35 AM
Updated 07/09/2023, 06:31 AM
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Growth is a must have but with rising growth rates, price ratios also go up. You should be careful with stocks that have a P/E ratio over 20 and a huge debt load.

Today, I like to screen stocks from the consumer goods sector, one of my favorite investment fields. Two-thirds of my personal stock holdings have a relation to the consumer area. I love those stocks when they are well managed and pay great dividends.

Consumer stocks are normally characterized by low cyclic stocks which produce solid returns on the invested capital. My screening criteria are:

- Positive Dividend Yield
- Market Capitalization over 10 billion
- Relationship to the Consumer Goods Sector
- EPS Growth over 10 Percent for the next 5 Years

Nineteen stocks matched my criteria of which fifteen have a current buy or better ratio. Car producers and suppliers are dominating the results. Those are also stocks with the highest beta ratios.

NIKE (NYSE:NKE) has a market capitalization of $49.52 billion. The company employs 44,000 people, generates a revenue of $24.128 billion and has a net income of $2.223 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.382 billion. The EBITDA margin is 14.02 percent (the operating margin is 12.36 percent and the net profit margin 9.21 percent).

Financial Analysis: The total debt represents 2.49 percent of the company’s assets and the total debt in relation to the equity amounts to 3.71 percent. Due to the financial situation, a return on equity of 21.98 percent was realized. Twelve trailing months earnings per share reached a value of $2.39. Last fiscal year, the company paid $0.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.00, the P/S ratio is 2.05 and the P/B ratio is finally 4.86. The dividend yield amounts to 1.53 percent and the beta ratio has a value of 0.85.

Long-Term Stock History Chart Of NIKE

Long-Term Dividends History of NIKE

Long-Term Dividend Yield History of NIKE
Ecolab (NYSE:ECL) has a market capitalization of $22.03 billion. The company employs 40,200 people, generates revenue of $6.798 billion and has a net income of $463.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.149 billion. The EBITDA margin is 16.91 percent (the operating margin is 11.09 percent and the net profit margin 6.81 percent).

Financial Analysis: The total debt represents 41.86 percent of the company’s assets and the total debt in relation to the equity amounts to 134.76 percent. Due to the financial situation, a return on equity of 11.87 percent was realized. Twelve trailing months earnings per share reached a value of $1.93. Last fiscal year, the company paid $0.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 39.03, the P/S ratio is 3.24 and the P/B ratio is finally 3.88. The dividend yield amounts to 1.22 percent and the beta ratio has a value of 0.67.

Long-Term Stock History Chart Of Ecolab

Long-Term Dividends History of Ecolab

Long-Term Dividend Yield History of Ecolab
Estee Lauder (NYSE:EL) has a market capitalization of $24.44 billion. The company employs 38,500 people, generates revenue of $9.713 billion and has a net income of $860.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.612 billion. The EBITDA margin is 16.60 percent (the operating margin is 13.50 percent and the net profit margin 8.86 percent).

Financial Analysis: The total debt represents 19.54 percent of the company’s assets, and the total debt in relation to the equity amounts to 47.13 percent. Due to the financial situation, a return on equity of 31.96 percent was realized. Twelve trailing months earnings per share reached a value of $2.35. Last fiscal year, the company paid $0.52 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.87, the P/S ratio is 2.51 and the P/B ratio is finally 8.98. The dividend yield amounts to 1.14 percent and the beta ratio has a value of 1.33.

Long-Term Stock History Chart Of Estee Lauder

Long-Term Dividends History of Estee Lauder

Long-Term Dividend Yield History of Estee Lauder
Take a closer look at the full list of the best growing consumer stocks. The average P/E ratio amounts to 21.60 and forward P/E ratio is 17.37. The dividend yield has a value of 2.05 percent. Price to book ratio is 6.01 and price to sales ratio 3.16. The operating margin amounts to 15.05 percent and the beta ratio is 1.17. Stocks from the list have an average debt to equity ratio of 6.28.

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

Best Consumer Growth Picks
Related stock ticker symbols:
PM, ABV, F, NSANY, HMC, COH, JCI, VFC, BF-B, MDLZ, HOG, NKE, MJN, TM, FMX,
ECL, KOF, EL, RL

*I am long PM, MDLZ and NKE. 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.

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