Dividends4Life: Dividend Champions With Very Low Debt to Equity Ratios

Safe stocks have a higher priority for me. I believe that I don’t need a bigger return when I try to avoid the real big risks of investing. Every cent I don’t lose with my current holdings is also a cent that I don’t need to earn with other stocks. That's my philosophy. A real problem that affects the stock price is the debt situation. While everybody is only talking about growth and future potential, I do look at these ratios and the possibilities to repay the debt. Remember, you are a shareholder and get your dividends after loan and interest repayments.

Debt overloaded stocks have the problem that they need decades to reduce this debt if they are working in a non-growing industry. A stock with a bigger cash amount on banks is in my view a better alternative. The company has more possibilities to grow and if it doesn’t find a solution for investing the money, it can repurchase its own shares or boost the current dividend. Today, I want to discover some of the best dividend growth stocks with a very long dividend growth history and a very low leverage risk. I selected 109 Dividend Champions and screened them by a debt to equity ratio of less than 0.1. Thirteen stocks remained of which seven have a buy or better ratio. Here are my favorite stocks: Chevron Corporation (CVX), Automatic Data Processing (ADP) and Hormel Foods (HRL).

Source: Guru Focus

Related Articles:
- 7 High Yielders With A Low Free Cash Flow Payout
- Wealth is a Journey, Dividend Stocks Can Take You There
- 5 Higher-Yielding, Income Growing Tech Stocks
- Warning Signs of an Imminent Dividend Cut
- 7 Higher-Yielding Consumer Stocks To Build Your Yield

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

_____________________________________________________________________

0 comments

Post a Comment

~

Latest From Dividend Growth Stocks

Popular Posts Last 30 Days