Before the internet and even before computers, critical financial information was printed daily in newspapers. Though many newspaper still print this information, most people find it easier (and faster) to get information on their stocks from financial websites. So back when financial information was a tedious and manual process what was considered relevant enough to warrant inclusion?
Obviously the reader would want basic information like the stock's ticker symbol, volume, closing price and possibly high and low price for the day or last 52 weeks. Dividend yield was another piece of useful information often presented. One of the more interesting pieces of information presented was the Price Earnings (P/E) Ratio.
The P/E Ratio is one of the oldest metrics used. It is calculated as the market value per share divided by earnings per share (EPS). A high P/E ratio infers that investors expect strong future earnings growth. Conversely, a low P/E suggests limited future growth. These companies with limited growth projects to consume resources have historically been in a position to return large sums of cash to their shareholders as dividends.
This week week, I screened my dividend growth stocks database for stocks with a single digit P/E/ Ratio and with a dividend yield above 3%. The results are presented below:Microsoft Corporation (MSFT)
Yield: 3.1% | P/E: 9.46
Microsoft, the world's largest software company, develops PC software, including the Windows operating system and the Office application suite.Southside Bancshares Inc. (SBSI)
Yield: 3.3% | P/E: 9.65
Southside Bancshares Inc.