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The Best S&P 500 Dividend Stocks With Single Digit P/E Ratios

 July 05, 2012 01:48 PM
 

(By Long-Term Investors)  S&P 500 Stocks With Best Dividends By Dividend Yield - Stock, Capital, Investment. The S&P 500 index is a popular used tool by investors. Institutional player like big insurance companies or pension funds allocate their portfolio weighting on indices like the Dow Jones Index and Standard & Poor's 500. The S&P 500 is a free-float capitalization-weighted index published since 1957 by Standard & Poor's, a division of McGraw-Hill Companies. In order to get the best return, investors need to invest in the cheapest stocks of the index.


I screened the index with its 500 companies by the best yielding stocks with single digit P/E ratios. The index has 44 stocks with a very low P/E ratio  and the highest yield amounts to 10.27 percent, paid by Pitney Bowes (PBI). In order to focus on the best yielding stocks, I decided to select only those stocks with a minimum dividend yield of three percent. Exactly fourteen companies remained of which ten have a buy or better recommendation.

ConocoPhillips (NYSE:COP)
has a market capitalization of $71.33 billion. The company employs 29,700 people, generates revenue of $251,226.00 million and has a net income of $12,502.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31,891.00 million. The EBITDA margin is 12.69 percent (operating margin 9.16 percent and net profit margin 4.98 percent). Financial Analysis: The total debt represents 14.76 percent of the company's assets and the total debt in relation to the equity amounts to 34.69 percent. 


Due to the financial situation, a return on equity of 18.59 percent was realized. Twelve trailing months earnings per share reached a value of $9.15. Last fiscal year, the company paid $2.64 in form of dividends to shareholders. 


Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.16, P/S ratio 0.28 and P/B ratio 1.10. Dividend Yield: 4.74 percent. The beta ratio is 1.14.
Long-Term Dividends History of ConocoPhillips (COP) (Click to enlarge)
Long-Term Dividend Yield History of ConocoPhillips (NYSE: COP) (Click to enlarge)


Staples (NASDAQ:SPLS) has a market capitalization of $9.08 billion. The company employs 51,542 people, generates revenue of $25,022.19 million and has a net income of $983.83 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,110.49 million. The EBITDA margin is 8.43 percent (operating margin 6.51 percent and net profit margin 3.93 percent). 


Financial Analysis: The total debt represents 15.18 percent of the company's assets and the total debt in relation to the equity amounts to 29.05 percent. Due to the financial situation, a return on equity of 14.11 percent was realized. Twelve trailing months earnings per share reached a value of $1.40. Last fiscal year, the company paid $0.40 in form of dividends to shareholders. 


Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.42, P/S ratio 0.36 and P/B ratio 1.29. Dividend Yield: 3.38 percent. The beta ratio is 0.92.
Long-Term Dividends History of Staples, Inc. (SPLS) (Click to enlarge)
Long-Term Dividend Yield History of Staples, Inc. (NASDAQ: SPLS) (Click to enlarge)


General Dynamics (NYSE:GD) has a market capitalization of $23.85 billion. The company employs 89,800 people, generates revenue of $32,677.00 million and has a net income of $2,552.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,418.00 million. The EBITDA margin is 13.52 percent (operating margin 11.71 percent and net profit margin 7.81 percent). 


Financial Analysis: The total debt represents 11.27 percent of the company's assets and the total debt in relation to the equity amounts to 29.70 percent. Due to the financial situation, a return on equity of 19.23 percent was realized. Twelve trailing months earnings per share reached a value of $6.87. Last fiscal year, the company paid $1.88 in form of dividends to shareholders. 


Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.63, P/S ratio 0.73 and P/B ratio 1.78. Dividend Yield: 3.09 percent. The beta ratio is 1.25.


Long-Term Stock History Chart Of General Dynamics ... (Click to enlarge)
Long-Term Dividends History of General Dynamics ... (GD) (Click to enlarge)
Long-Term Dividend Yield History of General Dynamics ... (NYSE: GD) (Click to enlarge)


Take a closer look at the full table of the best yielding S&P 500 dividend stocks with single P/E ratios. The average P/E ratio amounts to 7.97 and forward P/E ratio is 7.57. The dividend yield has a value of 4.37 percent. Price to book ratio is 3.59 and price to sales ratio 0.85. The operating margin amounts to 16.55 percent.

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

The Best S&P 500 Dividend Stocks With Single Digit P/E Ratios (Click to enlarge)

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