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The Best Yielding Shares from the Business Services Sector
Originally Published At "
long-term-investments.blogspot.com
". An interesting industry is in my view the business services
industry. Nearly 100 companies are related to the sector of which
only 30 pay dividends to its shareholders. The total capitalization
of the sector amounts to $7.25 trillion. The average dividend yield
within the industry amounts to 25.4 and the yield reach 1.1
percent.
I like the industry because of the high profit margins, which
corresponds at 10.20 percent and is one of the highest values in
the sector. The most known stocks are Visa (
V
), MasterCard (
MA
) and Moody's (
MCO
). Business service is often financial networked.
I made a screen of the best yielding stocks within the business
services industry. In order to reduce the huge amount of 30
dividend paying business service stocks, I selected only those with
double-digit earnings per share growth. As a result, sixteen stocks
remain of which market analysts trust in eleven companies and
recommend them to buy now.
Here are my favorite companies I would buy:
Western Union (
WU
)
has a market capitalization of $7.37 billion. The company employs
8,000 people, generates revenue of $5.491 billion and has a net
income of $1.165 billion. The firm's earnings before interest,
taxes, depreciation and amortization (EBITDA) amounts to $1.577
billion. The EBITDA margin is 28.73 percent (the operating margin
is 25.22 percent and the net profit margin 21.22 percent).
Financial Analysis: The total debt represents 39.51 percent of
the company's assets and the total debt in relation to the equity
amounts to 400.45 percent. Due to the financial situation, a return
on equity of 157.75 percent was realized. Twelve trailing months
earnings per share reached a value of $2.01. Last fiscal year, the
company paid $0.31 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The
P/E ratio is 6.13, the P/S ratio is 1.34 and the P/B ratio is
finally 8.55. The dividend yield amounts to 4.05 percent and the
beta ratio has a value of 1.44.
Mercadolibre (
MELI
)
has a market capitalization of $3.37 billion. The company employs
1,633 people, generates revenue of $298.93 million and has a net
income of $76.80 million. The firm's earnings before interest,
taxes, depreciation and amortization (EBITDA) amounts to $107.04
million. The EBITDA margin is 35.81 percent (the operating margin
is 33.38 percent and the net profit margin 25.69 percent).
Financial Analysis: The total debt represents 0.08 percent of
the company's assets and the total debt in relation to the equity
amounts to 0.13 percent. Due to the financial situation, a return
on equity of 39.28 percent was realized. Twelve trailing months
earnings per share reached a value of $2.11. Last fiscal year, the
company paid $0.35 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The
P/E ratio is 36.24, the P/S ratio is 11.27 and the P/B ratio is
finally 15.37. The dividend yield amounts to 0.57 percent and the
beta ratio has a value of 1.91.
Mastercard (
MA
)
has a market capitalization of $57.86 billion. The company employs
6,700 people, generates revenue of $6.714 billion and has a net
income of $1.904 billion. The firm's earnings before interest,
taxes, depreciation and amortization (EBITDA) amounts to $2.907
billion. The EBITDA margin is 43.30 percent (the operating margin
is 40.41 percent and the net profit margin 28.36 percent).
Financial Analysis: The total debt represents 0.00 percent of
the company's assets and the total debt in relation to the equity
amounts to 0.00 percent. Due to the financial situation, a return
on equity of 34.43 percent was realized. Twelve trailing months
earnings per share reached a value of $17.26. Last fiscal year, the
company paid $0.60 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The
P/E ratio is 26.92, the P/S ratio is 8.60 and the P/B ratio is
finally 10.05. The dividend yield amounts to 0.26 percent and the
beta ratio has a value of 0.90.
Take a closer look at the full table of the best business
service dividend stocks. The average P/E ratio amounts to 24.424
and forward P/E ratio is 19.80. The dividend yield has a value of
2.50 percent. Price to book ratio is 6.30 and price to sales ratio
3.45. The operating margin amounts to 22.56 percent. The average
stock has a debt to equity ratio of 0.84.
Selected Articles:
· The 20 Biggest Dividend Stocks Within The Service Sector
· 13 Best Dividend Paying Services Stocks
· The Best Yielding Large Cap Services Stocks
· 24 Of Warren Buffett's Most Wanted Dividend Stocks
*I am long WU. I receive no compensation to write about these
specific stocks, sector or theme. I don't plan to increase or
decrease positions or obligations within the next 72 hours.
For the other stocks: I have no positions in any stocks
mentioned, and no plans to initiate any positions within the next
72 hours. I receive no compensation to write about any specific
stock, sector or theme.
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