Dividends4Life: High-Yielding Income Growth Stocks with Low Debt Ratios

I often say that growth and income growth are two major items in wealth creating. Another criterion is the debt level. A company with indebtedness has many more possibilities to grow or to create something special. Companies with a huge debt load must create management teams to handle this debt and look for new finance rounds. I love it when stocks have a low debt to equity ratio. But it’s only an additional stone in the wall of corporate finance and valuation.

oday I highlight the highest dividend paying stocks (over 5% dividend yield) with more than five years of consecutive dividend growth and a debt to equity ratio of less than one. The ratio is not really low, but it’s okay for a higher-yielding company in my view. What matters in this area is the expected growth. Growth destroys debt. A growing income makes it easier to pay back the loans. Here are my favorite stocks: Boardwalk Pipeline Partners (BWP), AstraZeneca (AZN) and Reynolds American (RAI).

Source: Guru Focus

Related Articles:
- Defense Stocks May Not Be Defensive Stocks
- 10 Dividend Stocks That Gave Me A 20%+ Annualized Return
- All Investments Carry Risk
- 9 Stocks Delivering The Dividend Dream
- 10 Quality Dividend Stocks Trading Below Their Fair Value

Click here to have future posts delivered to you for free!



Post a Comment


Latest From Dividend Growth Stocks

Popular Posts Last 30 Days