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9 Of The Cheapest Large Cap Dividend Stocks The Market Has To Offer (GM, MET, AFL)

Today I screened the market by large cap bargains. Those stocks have a market cap over USD 10 billion as well as a future P/E ratio of less than 10.

I know how hard it is to find real investment opportunities. I personally bought some insurance stocks in the past because those are relatively cheap valuated and they offer a little upside with rising interest rates, despite the fact that they also could get hurt due the their huge fixed income portfolio.

Within the dividend growth community, some traders have announced that they have put Deere stocks into their portfolio. I also own stocks of Deere because its one of the leading companies within the farm and soft commodity space.

Below are five dividend ideas with single-digit forward P/E ratios and positive earnings growth for the next five years while debt ratios are acceptable. 

These are the criteria in detail:

- Forward P/E under 10
- 5Y future earnings growth positive
- Large Caps
- Dividends positive
- Long-term debt-to-equity under 1

The selection is not huge. Attached is also a list with all details from the screen. Nine stocks are in focus of the screen.

5 Cheaply Valueated Dividend Stocks...

General Motors Company (NYSE:GM) has a market capitalization of $55.41 billion. The company employs 219,000 people, generates revenue of $155.427 billion and has a net income of $5.331 billion. General Motors Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.598 billion. The EBITDA margin is 8.11 percent (the operating margin is 3.16 percent and the net profit margin 3.43 percent).

Financial Analysis: The total debt represents 21.75 percent of General Motors Company’s assets and the total debt in relation to the equity amounts to 84.92 percent. Due to the financial situation, a return on equity of 11.54 percent was realized by General Motors Company. Twelve trailing months earnings per share reached a value of $1.24.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.01, the P/S ratio is 0.36 and the P/B ratio is finally 1.31. The dividend yield amounts to 3.47 percent and the beta ratio has a value of 1.71.


Long-Term Stock Price Chart Of General Motors Company (GM)
Long-Term Dividend Payment History of General Motors Company (GM)
Long-Term Dividend Yield History of General Motors Company (GM)


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Metlife (NYSE:MET) has a market capitalization of $60.40 billion. The company employs 65,000 people, generates revenue of $68.365 billion and has a net income of $3.391 billion. Metlife’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.399 billion. The EBITDA margin is 6.43 percent (the operating margin is 7.80 percent and the net profit margin 4.96 percent).

Financial Analysis: The total debt represents 5.92 percent of Metlife’s assets and the total debt in relation to the equity amounts to 85.18 percent. Due to the financial situation, a return on equity of 5.15 percent was realized by Metlife. Twelve trailing months earnings per share reached a value of $3.92. Last fiscal year, Metlife paid $1.01 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.76, the P/S ratio is 0.89 and the P/B ratio is finally 0.98. The dividend yield amounts to 2.60 percent and the beta ratio has a value of 1.84.


Long-Term Stock Price Chart Of Metlife (MET)
Long-Term Dividend Payment History of Metlife (MET)
Long-Term Dividend Yield History of Metlife (MET)

AFLAC (NYSE:AFL) has a market capitalization of $27.60 billion. The company employs 8,859 people, generates revenue of $24.138 billion and has a net income of $3.158 billion. AFLAC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.451 billion. The EBITDA margin is 26.73 percent (the operating margin is 21.17 percent and the net profit margin 13.08 percent).

Financial Analysis: The total debt represents 4.04 percent of AFLAC’s assets and the total debt in relation to the equity amounts to 33.50 percent. Due to the financial situation, a return on equity of 20.64 percent was realized by AFLAC. Twelve trailing months earnings per share reached a value of $6.33. Last fiscal year, AFLAC paid $1.42 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.64, the P/S ratio is 1.15 and the P/B ratio is finally 1.92. The dividend yield amounts to 2.43 percent and the beta ratio has a value of 1.54.


Long-Term Stock Price Chart Of AFLAC (AFL)
Long-Term Dividend Payment History of AFLAC (AFL)
Long-Term Dividend Yield History of AFLAC (AFL)




Marathon Petroleum (NYSE:MPC) has a market capitalization of $25.87 billion. The company employs 20,185 people, generates revenue of $100.248 billion and has a net income of $2.133 billion. Marathon Petroleum’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.639 billion. The EBITDA margin is 4.63 percent (the operating margin is 3.42 percent and the net profit margin 2.13 percent).

Financial Analysis: The total debt represents 11.96 percent of Marathon Petroleum’s assets and the total debt in relation to the equity amounts to 31.10 percent. Due to the financial situation, a return on equity of 18.64 percent was realized by Marathon Petroleum. Twelve trailing months earnings per share reached a value of $6.26. Last fiscal year, Marathon Petroleum paid $1.54 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.39, the P/S ratio is 0.25 and the P/B ratio is finally 2.45. The dividend yield amounts to 2.22 percent and the beta ratio is not calculable.


Long-Term Stock Price Chart Of Marathon Petroleum (MPC)
Long-Term Dividend Payment History of Marathon Petroleum (MPC)
Long-Term Dividend Yield History of Marathon Petroleum (MPC)

Hewlett-Packard (NYSE:HPQ) has a market capitalization of $65.72 billion. The company employs 317,500 people, generates revenue of $112.298 billion and has a net income of $5.113 billion. Hewlett-Packard’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.716 billion. The EBITDA margin is 11.32 percent (the operating margin is 6.35 percent and the net profit margin 4.55 percent).

Financial Analysis: The total debt represents 21.37 percent of Hewlett-Packard’s assets and the total debt in relation to the equity amounts to 82.83 percent. Due to the financial situation, a return on equity of 20.57 percent was realized by Hewlett-Packard. Twelve trailing months earnings per share reached a value of $2.65. Last fiscal year, Hewlett-Packard paid $0.55 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.97, the P/S ratio is 0.62 and the P/B ratio is finally 2.59. The dividend yield amounts to 1.73 percent and the beta ratio has a value of 1.47.


Long-Term Stock Price Chart Of Hewlett-Packard (HPQ)
Long-Term Dividend Payment History of Hewlett-Packard (HPQ)
Long-Term Dividend Yield History of Hewlett-Packard (HPQ)


Cheap Stocks By Fwd P/E (Click to enlarge)

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Related Stock Ticker Symbols:
GM, MET, AFL, PRU, MPC, HIG, VLO, HPQ, LNC

*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.