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Dividend Stocks To Buy

Published 11/09/2012, 02:00 PM
Updated 07/09/2023, 06:31 AM
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There are so many stocks that investors can buy and many are very confused about the fundamentals and data overflow. They may ask themselves "what dividend stocks should I buy". You can follow so many stock buying approaches like the Dividend Aristocrats, or Dogs of the Dow Jones. You can follow ETFs or cover a simple index of dividend stocks to buy that have outperformed the market. Not all of these strategies are of success. Today, I like to show you what kind of profit you could make by buying dividend stocks and hold them over a very long period. I selected a portfolio of 24 best dividend paying stocks with a well diversified product portfolio. The portfolio was created by buyupside.com and is suitable for a conservative long-term investor.

Here is our dividend buying stock portfolio:

Portfolio Overview
Best Dividend Buy Portfolio
Over the past ten years, stocks from the portfolio grew on average by 148.48% including dividends. This represents an annulized return of 8.71%. Not much but enough for beating the inflation and to increase your private wealth. Below the the portfolio return chart over the recent ten years:
24 of the Best Dividend Paying Stocks
Not all of the stocks have a buy or better recommendation for the time being. Only four companies of the best dividend paying stock portfolio are currently recommended.

Our list of dividend-stocks-to-buy follows:

Chevron Corporation (CVX) has a market capitalization of $207.73 billion. The company generates revenue of $253.706 billion and has a net income of $27.008 billion. The firm’s EBITDA amounts to $60.545 billion. The EBITDA margin is 23.86% (operating margin 18.78% and net profit margin 10.65%).

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

Here are the price ratios of the company: The P/E ratio is 8.68, Price/Sales 0.83 and Price/Book ratio 1.75. Dividend Yield: 3.35%. The beta ratio is 0.80.

Johnson & Johnson (JNJ) has a market capitalization of $191.58 billion. The company generates revenue of $65.030 billion and has a net income of $9.672 billion. The firm’s EBITDA amounts to $15.993 billion. The EBITDA margin is 24.59% (operating margin 19.01% and net profit margin 14.87%).

The total debt represents 17.27% of the company’s assets and the total debt in relation to the equity amounts to 34.39%. Last fiscal year, a return on equity of 17.02% was realized. Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, the company paid $2.25 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 22.88, Price/Sales 2.98 and Price/Book ratio 3.36. Dividend Yield: 3.47%. The beta ratio is 0.55.

Northeast Utilities (NU) has a market capitalization of $12.00 billion. The company generates revenue of $4.465 billion and has a net income of $400.51 million. The firm’s EBITDA amounts to $1.096 billion. The EBITDA margin is 24.55% (operating margin 17.78% and net profit margin 8.97%).

The total debt represents 34.36% of the company’s assets and the total debt in relation to the equity amounts to 130.20%. Last fiscal year, a return on equity of 10.09% was realized. Twelve trailing months earnings per share reached a value of $2.00. Last fiscal year, the company paid $1.10 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 19.14, Price/Sales 2.70 and Price/Book ratio 1.69. Dividend Yield: 3.58%. The beta ratio is 0.48.

Northwest Natural Gas (NWN) has a market capitalization of $1.15 billion. The company generates revenue of $848.80 million and has a net income of $63.90 million. The firm’s EBITDA amounts to $214.85 million. The EBITDA margin is 25.31% (operating margin 17.06% and net profit margin 7.53%).

The total debt represents 29.98% of the company’s assets and the total debt in relation to the equity amounts to 115.23%. Last fiscal year, a return on equity of 9.08% was realized. Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, the company paid $1.75 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 19.00, Price/Sales 1.37 and Price/Book ratio 1.63. Dividend Yield: 4.19%. The beta ratio is 0.26.

Take a closer look at the current valuation of the best dividend paying stock portfolio. The average P/E is 19.12 and the dividend yield amounts to 4.26%.

Related stock ticker symbols:
MCY, WPC, T, UHT, VVC, CIZN, PWOD, VZ, O, COP, ED, WGL, NWN, AROW, LLY, PNY, ATO, NU, KMB, CLX, JNJ, CVX, ABT, CL

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