Service Sector Dividend Stocks

Service is good. A wealthy economy has a highly developed consumer-based economy with a large service sector. In America, 897 companies with a stock market listing are available for investors. They all together have a market capitalization of USD $53.37 trillion. The average P/E-ratio within the sector amounts to 19.94 and the dividend yield has a value of 1.81%.

I made a graphic of the 20 biggest stocks from the services sector with positive dividend payments. Below the 20 biggest dividend payers are no high-yields but nearly all stocks (nineteen) are currently recommended to buy.

McDonald's (NYSE: MCD) has a market capitalization of $93.14 billion. The company employs 420,000 people, generates revenue of $27,006.00 million and has a net income of $5,503.10 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,766.70 million. The EBITDA margin is 36.16 percent (operating margin 31.58% and net profit margin 20.38%).

Financial Analysis: The total debt represents 37.89% of the company’s assets and the total debt in relation to the equity amounts to 86.87%. Due to the financial situation, a return on equity of 37.92% was realized. Twelve trailing months earnings per share reached a value of $5.32. Last fiscal year, the company paid $2.53 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.35, P/S ratio 3.45 and P/B ratio 6.56. Dividend Yield: 3.33%. The beta ratio is 0.40.



Wal-Mart Stores (NYSE: WMT) has a market capitalization of $252.14 billion. The company employs 2,200,000 people, generates revenue of $446,950.00 million and has a net income of $16,454.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34,688.00 million. The EBITDA margin is 7.76% (operating margin 5.94% and net profit margin 3.68%).

Financial Analysis: The total debt represents 27.62% of the company’s assets and the total debt in relation to the equity amounts to 74.92%. Due to the financial situation, a return on equity of 22.55% was realized. Twelve trailing months earnings per share reached a value of $4.75. Last fiscal year, the company paid $1.46 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.79, P/S ratio 0.57 and P/B ratio 3.61. Dividend Yield: 2.11%. The beta ratio is 0.31.



Union Pacific (NYSE: UNP) has a market capitalization of $57.27 billion. The company employs 45,797 people, generates revenue of $19,557.00 million and has a net income of $3,292.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,336.00 million. The EBITDA margin is 37.51% (operating margin 29.24 percent and net profit margin 16.83%).

Financial Analysis: The total debt represents 19.75% of the company’s assets and the total debt in relation to the equity amounts to 47.94%. Due to the financial situation, a return on equity of 18.12% was realized. Twelve trailing months earnings per share reached a value of $7.73. Last fiscal year, the company paid $1.93 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.64, P/S ratio 2.93 and P/B ratio 3.12. Dividend Yield: 1.98%. The beta ratio is 1.16.



CVS Caremark (NYSE: CVS) has a market capitalization of $60.56 billion. The company employs 202,000 people, generates revenue of $107,100.00 million and has a net income of $3,488.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,898.00 million. The EBITDA margin is 7.37% (operating margin 5.91% and net profit margin 3.26%).

Financial Analysis: The total debt represents 15.52% of the company’s assets and the total debt in relation to the equity amounts to 26.32%. Due to the financial situation, a return on equity of 9.22% was realized. Twelve trailing months earnings per share reached a value of $2.83. Last fiscal year, the company paid $0.50 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.81, P/S ratio 0.57 and P/B ratio 1.64. Dividend Yield: 1.35%. The beta ratio is 0.74.



Take a closer look at the full table of the biggest dividend payers from the services sector. The average price to earnings ratio (P/E ratio) amounts to 21.65 and forward P/E ratio is 15.80. The dividend yield has a value of 1.74%. Price to book ratio is 4.88 and price to sales ratio 2.59. The operating margin amounts to 17.04% and the beta ratio is 1.05. The average stock has a debt to equity ratio of 0.61.

Here is the full table with some fundamentals (TTM)

Related Stock Ticker Symbols:
WMT, V, CMCSA, MCD, DIS, HD, UPS, CVS, MA, UNP, NWSA, TWX, COST,
TGT, CNI, SBUX, LVS, LOW, TJX, YUM