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6 Large-Cap Dividend Stocks With Low Debt and Impressive Profitability

Published Tue, 09 Aug 2011 17:56:05 -0400 on Seeking Alpha

Company debt is a very important consideration when choosing among dividend stocks. Because debt holders are always paid before shareholder dividends, company debt is a wedge between firm value and the firm’s value to shareholders. High amounts of company debt also decrease the firm’s financial flexibility. We ran a screen on large-cap dividend stocks (paying dividend yields above 2% and sustainable payout ratios below 35%) with low company debt. We screened this universe for companies with higher gross, operating and pretax margins than their industry peers.Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.Your browser does not support iframes. We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
INTEL 49.29   24.9 1.98 1.20 2.44
3M 235.51   29.7 7.92 5.44 2.23
UNITED TECHNOLOGIES 134.74   23.6 5.70 2.80 2.07
FIFTH THIRD BANCORP 33.05   11.6 2.85 0.64 1.90
HONEYWELL INTERNATIONAL 151.11   72.6 2.08 2.98 1.90