Category: Financial

Dividend Champions with low payout ratios and small debt figures originally published at long-term-investments.blogspot.com. Dividend Champions are stocks with a very long history of consecutive dividend hikes. They have achieved to boost dividends year over year for more than 25 years without an interruption.

Only 105 stocks have managed this very important goal for long-term dividend growth investors. I like those stocks but some of them have a really high payout ratio.

Earlier, I talked about the importance of the dividend growth rate and that it is better to buy low yielding stocks with a much higher growth rate than stocks with very big yields. Two main criteria for future dividend growth are the debt ratios and dividend payout figures.

 

This month, I started an article serial about dividend stocks with potential to boost dividends. Today I would like to present you Dividend Champions with the lowest dividend payouts. Only 10 firms have a payout ratio of less than 20 percent. Seven of them are currently recommended to buy.

Most of them are modestly leveraged. Not low but also not too high but the right leverage ratio is also a question of the business model and the strong cash-flow of a corporate as well as the costs for growth.

Here is the full table with some fundamentals:

Dividend Champions With Very Low Payout Ratios...

Take a closer look at the full list. The average P/E ratio amounts to 18.14 and forward P/E ratio is 15.30. The dividend yield has a value of 1.49 percent. Price to book ratio is 4.69 and price to sales ratio 2.06. The operating margin amounts to 19.19 percent and the beta ratio is 1.29. Stocks from the list have an average debt to equity ratio of 0.49.

Related Stock Ticker Symbols:

HP, AFL, MHFI, DOV, FDO, PPG, SCL, NDSN, FUL, BEN

Selected Articles:

· 15 Dividend Growth Stocks With More Than 20% ROE and ROI

· 17 High Yielding Dividend Achievers | Cheap Income Growth Stocks

· 14 Top Technology Dividend Stocks With Potential To Pay Bigger Dividends

· 12 Healthcare Dividend Stocks With High Potential To Boost Growth And Hike Dividends