While you should also be mindful of valuation and try not to purchase income at overzealous market pricing, if the payout/yield at which you are purchasing is acceptable and sustainable, that should be a priority as well.
Below are four stock ideas for conservative investors with a long investment horizon. I'm a big believer in long-term value creation. Only over a long period of time, companies can unlock values, grow and finally create the maximun of return for investors and stakeholders.
Emerson Electric -- Yield: 3.32%
Emerson Electric (NYSE:EMR) employs 115,100 people, generates revenue of $24,537.00 million and has a net income of $2,184.00 million. The current market capitalization stands at $38.76 billion.Emerson Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,936.00 million. The EBITDA margin is 20.12% (the operating margin is 14.44% and the net profit margin 8.90%).
Financials: The total debt represents 24.92% of Emerson Electric assets and the total debt in relation to the equity amounts to 59.53%. Due to the financial situation, a return on equity of 20.74% was realized by Emerson Electric.
Twelve trailing months earnings per share reached a value of $3.15. Last fiscal year, Emerson Electric paid $1.72 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.94, the P/S ratio is 1.58 and the P/B ratio is finally 3.89. The dividend yield amounts to 3.32%.
Stock Charts:
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| Long-Term Stock Price Chart of Emerson Electric (EMR) |
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| Long-Term Dividend Payment History of Emerson Electric (EMR) |
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| Long-Term Dividend Yield History of Emerson Electric (EMR) |
Intl. Business Machines -- Yield: 2.78%
Intl. Business Machines (NYSE:IBM) employs 379,592 people, generates revenue of $92,793.00 million and has a net income of $15,752.00 million. The current market capitalization stands at $156.67 billion.Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $25,350.00 million. The EBITDA margin is 27.32% (the operating margin is 21.54% and the net profit margin 16.98%).
Financials: The total debt represents 34.72% of Intl. Business Machines assets and the total debt in relation to the equity amounts to 343.82%. Due to the financial situation, a return on equity of 90.89% was realized by Intl. Business Machines.
Twelve trailing months earnings per share reached a value of $15.74. Last fiscal year, Intl. Business Machines paid $4.25 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.07, the P/S ratio is 1.69 and the P/B ratio is finally 13.23. The dividend yield amounts to 2.78%.
Stock Charts:
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| Long-Term Stock Price Chart of Intl. Business Machines (IBM) |
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| Long-Term Dividend Payment History of Intl. Business Machines (IBM) |
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| Long-Term Dividend Yield History of Intl. Business Machines (IBM) |
General Dynamics -- Yield: 2.05%
General Dynamics (NYSE:GD) employs 99,500 people, generates revenue of $30,852.00 million and has a net income of $2,673.00 million. The current market capitalization stands at $44.65 billion.General Dynamics’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,385.00 million. The EBITDA margin is 14.21% (the operating margin is 12.61% and the net profit margin 8.66%).
Financials: The total debt represents 11.06% of General Dynamics assets and the total debt in relation to the equity amounts to 33.06%. Due to the financial situation, a return on equity of 20.30% was realized by General Dynamics.
Twelve trailing months earnings per share reached a value of $7.86. Last fiscal year, General Dynamics paid $2.42 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.12, the P/S ratio is 1.45 and the P/B ratio is finally 3.78. The dividend yield amounts to 2.05%.
Stock Charts:
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| Long-Term Stock Price Chart of General Dynamics (GD) |
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| Long-Term Dividend Payment History of General Dynamics (GD) |
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| Long-Term Dividend Yield History of General Dynamics (GD) |
UnitedHealth -- Yield: 1.33%
UnitedHealth (NYSE:UNH) employs 170,000 people, generates revenue of $130,474.00 million and has a net income of $5,619.00 million. The current market capitalization stands at $107.65 billion.UnitedHealth’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11,330.00 million. The EBITDA margin is 8.68% (the operating margin is 7.87% and the net profit margin 4.31%).
Financials: The total debt represents 20.15% of UnitedHealth assets and the total debt in relation to the equity amounts to 53.63%. Due to the financial situation, a return on equity of 17.40% was realized by UnitedHealth.
Twelve trailing months earnings per share reached a value of $5.66. Last fiscal year, UnitedHealth paid $1.40 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.94, the P/S ratio is 0.83 and the P/B ratio is finally 3.32. The dividend yield amounts to 1.33%.
Stock Charts:
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| Long-Term Stock Price Chart of UnitedHealth (UNH) |
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| Long-Term Dividend Payment History of UnitedHealth (UNH) |
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| Long-Term Dividend Yield History of UnitedHealth (UNH) |
