Most of us have the dream to save a little money over the years and invest it in fundamentally attractive stocks with great dividends in order to build up a secondary income source. Starting at a low passive income, the dividends grow, your savings increases the amount of stock capital and your dividend income grow steadily. If you made the right investments, you should expect at least an income from your investing activities which is high enough to pay all of your daily needs and some extra items. All is only a question of the amount of regular savings and the return and growth of your dividend stocks. The fundamental basis is that you find growth stocks that share their business success with you. An investment class that covers the best dividend growth stocks is the Dividend Champions category. The prices of those high-quality growth stocks are very high, so we should take look at the second group of following stocks, the Dividend Contenders group (stocks with consecutive dividend growth of more than 10 years but less than 25 years).
I made a screen of the best yielding Dividend Contenders, starting at a yield of more than five%. Fifteen companies remained, of which five are currently recommended to buy.
Kinder Morgan Energy Partners (KMP) has a market capitalization of $29.80 billion. The company employs 8,120 people, generates revenue of $8.211 billion and has a net income of $1.268 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.617 billion. The EBITDA margin is 31.88% (the operating margin is 20.34% and the net profit margin 15.45%).
- Financial Analysis: The total debt represents 53.18% of the company’s assets and the total debt in relation to the equity amounts to 170.74%. Due to the financial situation, a return on equity of 1.16% was realized. Twelve trailing months earnings per share reached a value of $1.55. Last fiscal year, the company paid $4.61 in the form of dividends to shareholders.
- Market Valuation: Here are the price ratios of the company: The P/E ratio is 52.72, the P/S ratio is 3.63 and the P/B ratio is finally 3.79. The dividend yield amounts to 6.17% and the beta ratio has a value of 0.36.
Lockheed Martin (LMT)
has a market capitalization of $29.10 billion. The company employs 123,000 people, generates revenue of $46.499 billion and has a net income of $2.667 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.903 billion. The EBITDA margin is 10.54% (the operating margin is 8.56% and the net profit margin 5.74%).
- Financial Analysis: The total debt represents 17.04% of the company’s assets and the total debt in relation to the equity amounts to 645.35%. Due to the financial situation, a return on equity of 118.59% was realized. Twelve trailing months earnings per share reached a value of $8.76. Last fiscal year, the company paid $3.25 in the form of dividends to shareholders.
- Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.27, the P/S ratio is 0.63 and the P/B ratio is finally 29.05. The dividend yield amounts to 5.12% and the beta ratio has a value of 0.94.
PPL Corporation (PPL)
has a market capitalization of $16.68 billion. The company employs 17,722 people, generates revenue of $12.737 billion and has a net income of $1.510 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.309 billion. The EBITDA margin is 33.83 percent (the operating margin is 24.30% and the net profit margin 11.86%).
- Financial Analysis: The total debt represents 43.54% of the company’s assets and the total debt in relation to the equity amounts to 171.51%. Due to the financial situation, a return on equity of 15.62% was realized. Twelve trailing months earnings per share reached a value of $2.95. 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 9.74, the P/S ratio is 1.31 and the P/B ratio is finally 1.53. The dividend yield amounts to 5.01% and the beta ratio has a value of 0.39.
Take a closer look at the full table of high yield Dividend Contenders. The average P/E ratio amounts to 19.04 and forward P/E ratio is 26.30. The dividend yield has a value of 6.86 percent. Price to book ratio is 2.75 and price to sales ratio 3.89. The operating margin amounts to 26.95 percent. The average stock has a debt to equity ratio of 1.04.
Here's The Full Table With Fundamentals (TTM)
Related Stock Ticker Symbols
NS, VGR, BPL, SPH, OHI, TCP, ARLP, KMP, JCS, PBCT, WPC, UBA, LMT, NNN, PPL