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15 Cheap Stocks With Strong Growth Prospects

Dividend stocks as a group have started to trade in a range as investors contemplate the effect that the upcoming interest rate hike will have on their valuation.

From our perspective, the decision on whether dividend stocks are a good hold in a rising-interest-rate environment is a moot point — as long as we’re looking for the right stocks.


The “right” dividend stocks in our book not only pay healthy dividends, but also have strong growth prospects. Focusing on strong balance sheets and growing revenue helps to avoid investing in companies that may be at risk of decreasing or cutting their dividends.


Attached you can find a few dividend stocks with double-digit earnings growth predictions for the next five years.


Each of the stocks has a market cap over 2 billion, a debt to equity ratio under 0.5 and a beta below the market average.


15 stocks fulfilled our criteria of which two are High-Yields. 13 of the results got a buy or better rating by analysts.


Here are the top results...


 Siliconware Precision Industries -- Yield: 6.41%

Siliconware Precision Industries (NASDAQ:SPIL) employs 23,611 people, generates revenue of $2,514.27 million and has a net income of $339.53 million. The current market capitalization stands at $4.29 billion.

Siliconware Precision Industries’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $805.23 million. The EBITDA margin is 32.03% (the operating margin is 16.98% and the net profit margin 13.50%).


Financials: The total debt represents 27.87% of Siliconware Precision Industries assets and the total debt in relation to the equity amounts to 51.09%. Due to the financial situation, a return on equity of 16.91% was realized by Siliconware Precision Industries.


Twelve trailing months earnings per share reached a value of $0.54. Last fiscal year, Siliconware Precision Industries paid $0.45 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.23, the P/S ratio is 1.71 and the P/B ratio is finally 2.06. The dividend yield amounts to 6.41%.


Stock Charts:



Long-Term Stock Price Chart of Siliconware Precision Industries (SPIL)
Long-Term Stock Price Chart of Siliconware Precision Industries (SPIL)
Long-Term Dividend Payment History of Siliconware Precision Industries (SPIL)
Long-Term Dividend Payment History of Siliconware Precision Industries (SPIL)
Long-Term Dividend Yield History of Siliconware Precision Industries (SPIL)
Long-Term Dividend Yield History of Siliconware Precision Industries (SPIL)



GameStop -- Yield: 4.80%

GameStop (NYSE:GME) employs 18,000 people, generates revenue of $9,296.00 million and has a net income of $393.10 million. The current market capitalization stands at $3.14 billion.

GameStop’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $774.50 million. The EBITDA margin is 8.33% (the operating margin is 6.65% and the net profit margin 4.23%).


Financials: The total debt represents 8.38% of GameStop assets and the total debt in relation to the equity amounts to 17.20%. Due to the financial situation, a return on equity of 18.20% was realized by GameStop.


Twelve trailing months earnings per share reached a value of $3.67. Last fiscal year, GameStop paid $1.32 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.24, the P/S ratio is 0.34 and the P/B ratio is finally 1.56. The dividend yield amounts to 4.80%.


Stock Charts:



Long-Term Stock Price Chart of GameStop (GME)
Long-Term Stock Price Chart of GameStop (GME)
Long-Term Dividend Payment History of GameStop (GME)
Long-Term Dividend Payment History of GameStop (GME)
Long-Term Dividend Yield History of GameStop (GME)
Long-Term Dividend Yield History of GameStop (GME)



GameStop -- Yield: 4.80%

GameStop (NYSE:GME) employs 18,000 people, generates revenue of $9,296.00 million and has a net income of $393.10 million. The current market capitalization stands at $3.14 billion.

GameStop’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $774.50 million. The EBITDA margin is 8.33% (the operating margin is 6.65% and the net profit margin 4.23%).


Financials: The total debt represents 8.38% of GameStop assets and the total debt in relation to the equity amounts to 17.20%. Due to the financial situation, a return on equity of 18.20% was realized by GameStop.


Twelve trailing months earnings per share reached a value of $3.67. Last fiscal year, GameStop paid $1.32 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.24, the P/S ratio is 0.34 and the P/B ratio is finally 1.56. The dividend yield amounts to 4.80%.


Stock Charts:



Long-Term Stock Price Chart of GameStop (GME)
Long-Term Stock Price Chart of GameStop (GME)
Long-Term Dividend Payment History of GameStop (GME)
Long-Term Dividend Payment History of GameStop (GME)
Long-Term Dividend Yield History of GameStop (GME)
Long-Term Dividend Yield History of GameStop (GME)



Taiwan Semiconductor -- Yield: 3.26%

Taiwan Semiconductor (NYSE:TSM) employs 43,591 people, generates revenue of $23,087.36 million and has a net income of $7,983.68 million. The current market capitalization stands at $110.51 billion.

Taiwan Semiconductor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,045.45 million. The EBITDA margin is 65.17% (the operating margin is 38.76% and the net profit margin 34.58%).


Financials: The total debt represents 16.77% of Taiwan Semiconductor assets and the total debt in relation to the equity amounts to 23.96%. Due to the financial situation, a return on equity of 27.86% was realized by Taiwan Semiconductor.


Twelve trailing months earnings per share reached a value of $1.83. Last fiscal year, Taiwan Semiconductor paid $2.39 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.14, the P/S ratio is 4.79 and the P/B ratio is finally 3.63. The dividend yield amounts to 3.26%.


Stock Charts:



Long-Term Stock Price Chart of Taiwan Semiconductor (TSM)
Long-Term Stock Price Chart of Taiwan Semiconductor (TSM)
Long-Term Dividend Payment History of Taiwan Semiconductor (TSM)
Long-Term Dividend Payment History of Taiwan Semiconductor (TSM)
Long-Term Dividend Yield History of Taiwan Semiconductor (TSM)
Long-Term Dividend Yield History of Taiwan Semiconductor (TSM)


15 Cheap Stocks With Strong Growth Prospects (click to enlarge)