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The Best Yielding Consumer Goods Shares With Low P/E ratio
Originally Published At "
long-term-investments.blogspot.com
". I personally like consumer goods stocks because they have a deep
relationship to the customer, directly and not indirect. My most
favorite stocks produce daily goods like food or toothpaste maybe
beauty or health products. They are well diversified and generate
ideally more than 50 percent of their revenues outside the United
States. I think about companies like Procter and Gamble or
ColgatePalmolive. Other stocks are PepsiCo and Coca Cola. They all
raised dividends over a very long period and helped to boost my
dividend income. Let's take a look into the sector and hunt for
some bargains.
I screened the sector by the best yielding stocks with a low P/E
ratio (value of less than 15). As result, ten stocks remain of
which two are high-yields and seven are recommended to buy. The
dominant industry in the screen is the auto manufacturing industry.
The market sees a high profit slowdown. For the time being,
earnings growth rate for those auto stocks are still attractive.
But the time will change. Also remarkable is the high debt ratios
of the car stocks. I personally don't like those companies and
wouldn't recommend them to buy.
Here are my favorite stocks:
Mattel (
MAT
)
has a market capitalization of $12.18 billion. The company employs
28,000 people, generates revenue of $6.266 billion and has a net
income of $768.51 million. The firm's earnings before interest,
taxes, depreciation and amortization (EBITDA) amounts to $1.202
billion. The EBITDA margin is 19.19 percent (the operating margin
is 16.61 percent and the net profit margin 12.26 percent).
Financial Analysis: The total debt represents 27.47 percent of
the company's assets and the total debt in relation to the equity
amounts to 59.68 percent. Due to the financial situation, a return
on equity of 29.00 percent was realized. Twelve trailing months
earnings per share reached a value of $2.41. Last fiscal year, the
company paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The
P/E ratio is 14.73, the P/S ratio is 1.94 and the P/B ratio is
finally 4.58. The dividend yield amounts to 3.49 percent and the
beta ratio has a value of 0.92.
Mondelez International (
MDLZ
)
has a market capitalization of $45.74 billion. The company employs
126,000 people, generates revenue of $54.365 billion and has a net
income of $3.547 billion. The firm's earnings before interest,
taxes, depreciation and amortization (EBITDA) amounts to $8.142
billion. The EBITDA margin is 14.98 percent (the operating margin
is 12.25 percent and the net profit margin 6.52 percent).
Financial Analysis: The total debt represents 28.70 percent of
the company's assets and the total debt in relation to the equity
amounts to 76.47 percent. Due to the financial situation, a return
on equity of 9.93 percent was realized. Twelve trailing months
earnings per share reached a value of $1.86. Last fiscal year, the
company paid $1.16 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The
P/E ratio is 13.82, the P/S ratio is 0.84 and the P/B ratio is
finally 1.29. The dividend yield amounts to 2.02 percent and the
beta ratio has a value of 0.54.
Bunge Limited (
BG
)
has a market capitalization of $10.52 billion. The company employs
35,000 people, generates revenue of $58.743 billion and has a net
income of $896 million. The firm's earnings before interest, taxes,
depreciation and amortization (EBITDA) amounts to $1.685 billion.
The EBITDA margin is 2.87 percent (the operating margin is 1.60
percent and the net profit margin 1.53 percent).
Financial Analysis: The total debt represents 17.53 percent of
the company's assets and the total debt in relation to the equity
amounts to 34.86 percent. Due to the financial situation, a return
on equity of 8.05 percent was realized. Twelve trailing months
earnings per share reached a value of $5.87. Last fiscal year, the
company paid $0.98 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The
P/E ratio is 12.27, the P/S ratio is 0.18 and the P/B ratio is
finally 0.95. The dividend yield amounts to 1.50 percent and the
beta ratio has a value of 1.18.
Take a closer look at the full table of cheap consumer goods
stocks. The average P/E ratio amounts to 12.15 and forward P/E
ratio is 10.87. The dividend yield has a value of 2.73 percent.
Price to book ratio is 1.75 and price to sales ratio 0.87. The
operating margin amounts to 9.92 percent. The average stock has a
debt to equity ratio of 1.25. The high leverage is explainable with
Fords figure of 5.34. If we exclude this value, the average
leverage amounts to 0.74.
Selected Articles:
· The 20 Biggest Consumer Goods Dividend Payers
· 16 Best Growing Dividend Paying Consumer Goods Stocks
· The Best Yielding Large Cap Consumer Stocks
· 13 Consumer Dividend Stocks With Strong Increase in Growth
*I am long MAT, MDLZ and LO. 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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