4 Top Dividend Picks From The Discount Variety Stores Industry To Benefit From Black Friday

The last month of the year is the most important month within the whole year because up to 1/4 of the full-year sales are generated within December. 

Everybody loves to buy great things that helps you to improve you life quality, makes living easier and keeps your friends and family members happy.

Black Friday is the first day on which analysts start to measure the consumer activity by spending money. Black Friday gives us a good sign if the shopping season will end at new records or not.

Today I would like to present you four of the most popular discount store operators that pay the best industry dividends and have managed to grow them over the past years.
Read More »

Continue

5 Great Dividend Paying Stocks With Double-Digit Short-Term Dividend Growth

As dividend investor, I always look for great investment opportunites that pays-off within a decade or so. Only a quick return can ensure a good total performance.

The biggest problem with my desk research is that I ever find tons of stock ideas that have performed very well in the past and have hiked dividends with high rates over decades but over the time, they have weaken and show a slowing dividend growth rate. That's not what I like to see.

Today I would highlight five of the top dividend growth stocks that have kept a strong dividend increasing rate over the short-term. Those stocks have raised their dividend distributions over the past year by more than 10 percent.

These are some great dividend stock ideas with highest short-term dividend growth rate ratios:

Philip Morris International (NYSE:PM) has a market capitalization of $144.11 billion. The company employs 87,100 people, generates revenue of $77.393 billion and has a net income of $9.154 billion. Philip Morris International’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14.827 billion. The EBITDA margin is 19.16 percent (the operating margin is 17.89 percent and the net profit margin 11.83 percent).

Financial Analysis: The total debt represents 60.63 percent of Philip Morris International’s assets. Twelve trailing months earnings per share reached a value of $5.28. Last fiscal year, Philip Morris International paid $3.24 in the form of dividends to shareholders. Dividend growth rate: 10.4 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.99, the P/S ratio is 1.85 and the P/B ratio is finally not calculable. The dividend yield amounts to 4.21 percent and the beta ratio has a value of 0.93.

Long-Term Stock Price Chart Of Philip Morris International (PM)

Long-Term Dividend Payment History of Philip Morris International (PM)

Long-Term Dividend Yield History of Philip Morris International (PM)

Chevron Corporation (NYSE:CVX) has a market capitalization of $233.93 billion. The company employs 62,000 people, generates revenue of $241.909 billion and has a net income of $26.336 billion. Chevron Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.975 billion. The EBITDA margin is 24.79 percent (the operating margin is 19.15 percent and the net profit margin 10.89 percent).

Financial Analysis: The total debt represents 5.23 percent of Chevron Corporation’s assets and the total debt in relation to the equity amounts to 8.93 percent. Due to the financial situation, a return on equity of 20.30 percent was realized by Chevron Corporation. Twelve trailing months earnings per share reached a value of $12.22. Last fiscal year, Chevron Corporation paid $3.51 in the form of dividends to shareholders. Dividend growth rate: 11.1 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.90, the P/S ratio is 0.97 and the P/B ratio is finally 1.73. The dividend yield amounts to 3.30 percent and the beta ratio has a value of 0.95.

Long-Term Stock Price Chart Of Chevron Corporation (CVX)

Long-Term Dividend Payment History of Chevron Corporation (CVX)

Long-Term Dividend Yield History of Chevron Corporation (CVX)

Caterpillar (NYSE:CAT) has a market capitalization of $53.55 billion. The company employs 122,402 people, generates revenue of $65.875 billion and has a net income of $5.708 billion. Caterpillar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.167 billion. The EBITDA margin is 18.47 percent (the operating margin is 13.01 percent and the net profit margin 8.66 percent).

Financial Analysis: The total debt represents 44.92 percent of Caterpillar’s assets and the total debt in relation to the equity amounts to 228.97 percent. Due to the financial situation, a return on equity of 37.36 percent was realized by Caterpillar. Twelve trailing months earnings per share reached a value of $5.25. Last fiscal year, Caterpillar paid $2.02 in the form of dividends to shareholders. Dividend growth rate: 14.3 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.02, the P/S ratio is 0.81 and the P/B ratio is finally 3.15. The dividend yield amounts to 2.85 percent and the beta ratio has a value of 1.96.

Long-Term Stock Price Chart Of Caterpillar (CAT)

Long-Term Dividend Payment History of Caterpillar (CAT)

Long-Term Dividend Yield History of Caterpillar (CAT)

General Electric (NYSE:GE) has a market capitalization of $273.27 billion. The company employs 305,000 people, generates revenue of $147.359 billion and has a net income of $14.902 billion. General Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29.339 billion. The EBITDA margin is 19.91 percent (the operating margin is 11.81 percent and the net profit margin 10.11 percent).

Financial Analysis: The total debt represents 60.42 percent of General Electric’s assets and the total debt in relation to the equity amounts to 336.56 percent. Due to the financial situation, a return on equity of 12.24 percent was realized by General Electric. Twelve trailing months earnings per share reached a value of $1.40. Last fiscal year, General Electric paid $0.70 in the form of dividends to shareholders. Dividend growth rate: 11.8 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.34, the P/S ratio is 1.86 and the P/B ratio is finally 2.29. The dividend yield amounts to 2.81 percent and the beta ratio has a value of 1.84.

Long-Term Stock Price Chart Of General Electric (GE)

Long-Term Dividend Payment History of General Electric (GE)

Long-Term Dividend Yield History of General Electric (GE)

Costco Wholesale (NASDAQ:COST) has a market capitalization of $53.75 billion. The company employs 103,000 people, generates revenue of $105.156 billion and has a net income of $2.061 billion. Costco Wholesale’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.999 billion. The EBITDA margin is 3.80 percent (the operating margin is 2.90 percent and the net profit margin 1.96 percent).

Financial Analysis: The total debt represents 16.50 percent of Costco Wholesale’s assets and the total debt in relation to the equity amounts to 46.14 percent. Due to the financial situation, a return on equity of 17.58 percent was realized by Costco Wholesale. Twelve trailing months earnings per share reached a value of $4.63. Last fiscal year, Costco Wholesale paid $8.17 in the form of dividends to shareholders. Dividend growth rate: 13.6 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.57, the P/S ratio is 0.51 and the P/B ratio is finally 4.95. The dividend yield amounts to 1.01 percent and the beta ratio has a value of 0.65.

Long-Term Stock Price Chart Of Costco Wholesale (COST)

Long-Term Dividend Payment History of Costco Wholesale (COST)

Long-Term Dividend Yield History of Costco Wholesale (COST)

Continue

Target: Next Stock Purchase For The Dividend Yield Passive Income Portfolio

I bought 20 shares of the discount store operator Target. The company yields at 2.41 percent and is priced with a P/E of 16.77. Due to growth, the forward P/E should sink to 13.10. Over the next five years, earnings are expected to grow by 11.06 percent yearly. That’s a good value and the price is fair in my view. The stock is down 1.5 percent last week.

The full stake cost me $1,434.20 in total and would bring me around $35 Bucks in dividend income, based on $1.72 estimated yearly dividends. Target operates in three segments: U.S. Retail, U.S. Credit Card and Canadian. As a component of the U.S. Retail Segment, its online presence is designed to enable guests to purchase products either online or by locating them in one of its stores with the aid of online research and location tools.

Latest Portfolio Transactions (Click to enlarge)

Dividend Yield Passive Income Portfolio I (Click to enlarge)

Dividend Yield Passive Income Portfolio II (Click to enlarge)

--------------------------------------

For readers who a new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.

--------------------------------------

Target is the second biggest capital market listed company from the discount and variety store industry, behind Costco Wholesale. COST as a USD 5 Billion bigger market capitalization but sells more items for around USD 30 billion per year. Costco has a smaller margin; it offers larger discounts and has a 12.5 percent gross margin. Target’s gross margin is at 30.80.

Target is a real Dividend Champion. The company raised its dividend payments over a period of 46 consecutive years. Its dividend growth accelerated from 18.6 percent over the recent 10 years to 24.7 percent for the past 3 Years. The latest dividend hike was at 20% from 30 Cents to 36 Cents on August 13, 2012.

Earnings and Dividends of Target

As of the time of writing, the stockholdings from the portfolio gained 9.13% since the date of funding. It’s a small underperformance compared to the broad market and a result of the slow purchasing process. I buy only one company each week for around 1k to 2k. In markets that are going strongly up, the strategy will produce an underperformance. My aim is not to show how make fast profits by trading stocks. I like to create a sustainable long-term dividend growth portfolio. I plan to boost the current income to 3k or more by the end of the year. Over the next ten years, this value should double to 6k or more.

Portfolio Performance (Click to enlarge)

With still $40,022.60 in cash, it’s a solid basis for further stock acquisitions. I’m quite confident to realize my current goals.

Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield		Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	16.79	3.65		28.90	50	$64.50	$1,765.50
LMT	Lockheed Martin C	13.8	3.72		92.72	20	$89.00	$2,400.00
INTC	Intel Corporation	12.46	3.9		21.27	50	$45.00	$1,163.00
MCD	McDonald's Corpor	18.08	3.09		87.33	15	$45.15	$1,470.45
WU	Western Union Com	10.32	2.77		11.95	100	$47.50	$1,696.00
PM	Philip Morris Int	17.33	3.85		85.42	20	$68.78	$1,777.60
JNJ	Johnson & Johnson	20.55	2.69		69.19	20	$49.80	$1,856.60
MO	Altria Group Inc	16.62	4.9		33.48	40	$70.40	$1,436.00
SYY	Sysco Corporation	20.08	3.21		31.65	40	$44.40	$1,390.80
DRI	Darden Restaurant	15.44	4.24		46.66	30	$61.50	$1,467.90
CA	CA Inc.	14.36	3.36		21.86	50	$50.00	$1,484.00
PG	Procter & Gamble	18.02	2.9		68.72	25	$58.20	$2,009.75
KRFT	Kraft Foods Group	21.13	3.54		44.41	40	$80.00	$2,258.00
MAT	Mattel Inc.	19.03	3.16		36.45	40	$53.60	$1,710.80
PEP	Pepsico Inc. Com	21.92	2.55		70.88	20	$43.60	$1,706.20
KMB	Kimberly-Clark Co	21.42	3.15		86.82	15	$46.50	$1,475.85
COP	ConocoPhillips Co	10.67	4.06		61.06	20	$52.80	$1,314.40
GIS	General Mills In	18.43	2.66		42.13	30	$41.10	$1,545.30
UL	Unilever PLC Comm	20.68	3.11		39.65	35	$44.91	$1,419.95
NSRGY	NESTLE SA REG SHR	18.99	3.22		68.69	30	$65.31	$2,007.00
GE	General Electric	18.28	3.1		23.39	65	$48.10	$1,602.25
ADP	Automatic Data Pr	24.55	2.36		61.65	25	$42.50	$1,812.00
K	Kellogg Company C	26.31	2.63		61.52	25	$44.00	$1,674.50
KO	Coca-Cola Company	21.51	2.62		38.83	40	$42.80	$1,625.60
RTN	Raytheon Company	12.23	3.01		57.04	20	$42.00	$1,400.20
RCI	Rogers Communicat	11.74	4.13		51.06	50	$83.30	$2,015.00
GPC	Genuine Parts Com	18.45	2.52		77.06	20	$41.28	$1,642.00
TSCDY	TESCO PLC SPONS A	226.67	4.05		17.98	110	$75.68	$1,855.70
APD	Air Products and	19.19	2.52		85.71	15	$40.50	$1,561.80
GSK	GlaxoSmithKline P	18.95	4.52		52.16	30	$70.38	$1,545.00
WMT	Wal-Mart Stores	15.37	2.23		79.25	20	$34.72	$1,560.00
BTI	British American	16.77	3.9		114.6	23	$95.22	$2,443.29
CHL	China Mobile Limi	10.54	4.11		55.32	25	$54.95	$1,334.50
MMM	3M Company Common	18.38	2.1		110.27	15	$36.75	$1,753.65
TUP	Tupperware Brands	24.08	2.36		80.98	15	$29.40	$1,247.25
IBM	International Bus	14.01	1.77		206.35	8	$28.00	$1,578.80
HAS	Hasbro Inc.	18.68	3.14		44.09	30	$44.40	$1,412.40
T	AT&T Inc.	27.42	5.05		34.47	30	$53.70	$1,068.00
WAG	Walgreen Co. Comm	22.31	2.16		44.25	30	$33.00	$1,524.60
AFL	AFLAC Incorporate	9.55	2.28		59.39	20	$27.60	$1,221.80
TGT	Target Corporatio	16.88	2.01		71.46	20	$28.80	$1,429.20
							$2,119.13	$66,662.64
							Average Yield	3.18%
							Yield On Cost	3.46%

Continue