3 Dividend Growth Stocks with High Yields and Positive Outlooks

The optimal dividend stock has a strong financial picture with the ability to grow and sustain dividends over a long-term horizon.  These stocks have nice dividend yields, growing dividends and Very Bullish outlooks among equity analysts.  Here are 3 stocks worth taking a deeper look at for your portfolio.

CA Technologies (CA) designs, develops, markets, delivers, licenses, and supports information technology (IT) management software products that operate on a range of hardware platforms and operating systems.  CA has a current dividend yield of 3.78% which was increased 520% in February 2012. The TTM (Trailing Twelve Month) Price/Earnings (P/E) ratio is 14.20. This ratio is lower than the average P/E for this Industry Group (Comp. Soft.) which is 44.03. The P/E of the S&P 500 is 3.62. The Price/Book Value ratio is 2.12. The average Price/ Book for this Industry Group (Comp. Soft.) is 3.72.  The Price/Cash Flow ratio is 8.88. A low ratio shows a strong ability to generate cash and reflects well on a company’s stock price and liquidity. The average Price/Cash Flow ratio for this Industry Group (Comp. Soft.) is 141.10.  The Price/TTM Sales ratio is 3.03. A stock with a low Price/Sales ratio indicates a stock is not overvalued. The Price/Sales ratio is significant since it is harder to manipulate sales than earnings. The Price/TTM Sales ratio for this Industry Group (Comp. Soft.) is 3.85.  CA has an equity summary score of 9.5 out of 10 for a VERY BULLISH outlook.

Seagate Technology Public Limited Company (STX) designs, manufactures, markets, and sells hard disk drives for enterprise, client compute, and client non-compute market applications worldwide.  STX has a current dividend yield of 3.22% which was increased 156% in the last year.  STX has a dividend growth 5-year average of 22%.  The TTM (Trailing Twelve Month) Price/Earnings (P/E) ratio is 13.97. This ratio is lower than the average P/E for this Industry Group (Comps. Hard.) which is 26.30. The P/E of the S&P 500 is 3.62.  The Price/Book Value ratio is 3.96. The average Price/ Book for this Industry Group (Comps. Hard.) is 4.12. The Price/Cash Flow ratio is 12.48. A low ratio shows a strong ability to generate cash and reflects well on a company’s stock price and liquidity. The average Price/Cash Flow ratio for this Industry Group (Comps. Hard.) is 155.98.  The Price/TTM Sales ratio is 1.13. A stock with a low Price/Sales ratio indicates a stock is not overvalued. The rice/Sales ratio is significant since it is harder to manipulate sales than earnings. The Price/TTM Sales ratio for this Industry Group (Comps. Hard.) is 2.58.  STX has an equity summary score of 9.9 out of 10 for a VERY BULLISH outlook.

National Grid plc (NGG) owns and operates regulated electricity and gas infrastructure networks in the United Kingdom and northeastern United States.  NGG has a current dividend yield of 5.57% which was increased 46% in the last year.  NGG has a dividend growth 5-year average of 7.8%.  The TTM (Trailing Twelve Month) Price/Earnings (P/E) ratio is 10.62. This ratio is lower than the average P/E for this industry Group (Elec. Cos) which is 16.44. The P/E of the S&P 500 is 3.62.  The Return on Assets (ROA) is 7.08. A high ROA is a good profitability measure since it reflects the ability of management to produce profits from each dollar of company assets. The average ROA for this Industry Group (Elec. Cos) is 4.74.  The Return on Equity (ROE) is 30.73%. This ratio helps represent the future ability of a company to grow earnings. The average ROE for this Industry Group (Elec. Cos) is 11.93%.  The EPS growth rate of 20.44% is greater than the expected next year EPS growth rate for S&P 500 of 12.87%.  NGG has an equity summary score of 9.8 out of 10 for a VERY BULLISH outlook.

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