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16 S&P 500 Companies Set To Reach A Dividend

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16 S&P 500 Companies Set To Reach A Dividend

Bank of America/ Merrill Lynch recently released criteria for companies in the S&P 500 which have the capabilities to initiate a dividend.

The 20 stock screens generated for investors included assets considered cash-rich and high- quality.

The criteria included:

  • Debt level based on the median for their individual industries
  • Percentage of cash of market cap – must be 2 % or higher
  • Earning trends proven to be stable based on prior fiscal year earnings and current year expectations
  • No major profit acceleration expected

Stocks in the financial market were exempt from said criteria.

The Bank of America, Merrill Lynch screen, is not a directly recommended list.

Investors need to consider their investment objectives and the fundamentals of the listed companies before making final investment decisions.

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Adobe Systems

 

  • Net debt to net operating profit is –2.6 x ( after taxes )
  • Median industry NOPAT –1.1 x
  • The list shows 8.7% of Cash percentage of market cap
  • Prior year growth 134%
  • Current year growth is at 33.2 %
  • Price objective: $109

Centene

 

  • Net debt to net operating profit is –1.9 x ( after taxes )
  • Median industry NOPAT 3.7 x
  • Cash as a percentage of market cap was 26.1 %
  • Prior year growth 29.6%
  • Current year growth is at 39.6 %
  • Price objective: $93

Cognizant Technology Solutions

 

  • Net debt to net operating profit is –2.2 x ( after taxes )
  • Median industry NOPAT 1.1 x
  • Cash as a percentage of market cap was 13 %
  • Prior year growth 12.8 %
  • Current year growth is at 10.4 %
  • Price objective: $70

Facebook

 

  • Net debt to net operating profit is –4.9 x ( after taxes )
  • Median industry NOPAT –0.4 x
  • Cash as a percentage of market cap was 5.7 %
  • Prior year growth 17.3 %
  • Current year growth at 37.7 %
  • Price objective: $145

F5 Networks

 

  • Net debt to net operating profit is –2.2 x ( after taxes )
  • Median industry NOPAT 0
  • Cash as a percentage of market cap was 10.9 %
  • Prior year growth 23 %
  • Current year growth at 5.3 %
  • Price objective: $117

 

Alphabet (Class A and Class C)

alphabet

  • Net debt to net operating profit is –4.1 x ( after taxes )
  • Median industry NOPAT –0.4 x
  • Cash as a percentage of market cap was 14.3 % (Class C) and 13.9 % (Class A)
  • Prior year growth 13 %
  • Current year growth is at 17 % (Class C) and 16.6 % (Class A)
  • Price objective: $925

Illumina

 

  • Net debt to net operating profit is –0.6 x ( after taxes )
  • Median industry NOPAT –0.4 x
  • Cash as a percentage of market cap was 5.8 %
  • Prior year growth 30.7 %
  • Current year growth is at 8.7 %
  • Price objective: $170

Intuitive Surgical

Intuitive Surgical

  • Net debt to net operating profit is –2.6 x ( after taxes )
  • Median industry NOPAT –1.7 x
  • Cash as a percentage of market cap was listed as 6.9 %
  • Prior year growth 39.9 %
  • Current year growth is reported at 7.2 %
  • Price objective: $750

Michael Kors

michael kors

  • Net debt to net operating profit is –0.8 x ( after taxes )
  • Median industry NOPAT –0 x
  • Cash as a percentage of market cap was 6.8 %
  • Prior year growth 32.9 %
  • Current year growth is at 3.3 %
  • Price objective: $62

Level 3 Communications

 

  • Net debt to net operating profit is 2.5 x ( after taxes )
  • Median industry NOPAT 7.3 x
  • Cash as a percentage of market cap was 4.6 %
  • Prior year growth 691.7 %
  • Current year growth is at 140.7 %
  • Price objective: $60

Monster Beverages

monster

  • Net debt to net operating profit is –5.3 x ( after taxes )
  • Median industry NOPAT 3.3 x
  • Cash as a percentage of market cap was 10.8 %
  • Prior year growth 2.5 %
  • Current year growth is at 28.7 %
  • Price objective: $155

PayPal

paypal

  • Net debt to net operating profit is –2.8 x ( after taxes )
  • Median industry NOPAT 1.1 x
  • Cash as a percentage of market cap was 10.8 %
  • Prior year growth 203 %
  • Current year growth is at 15.5 %
  • Price objective: $44

Red Hat

red hat

  • Net debt to net operating profit is –2.2 x ( after taxes )
  • Median industry NOPAT 1.1 x
  • Cash as a percentage of market cap was 8.9 %
  • Prior year growth 12.6 %
  • Current year growth is at 16.3 %
  • Price objective: $78

Urban Outfitters

urban outfitters

  • Net debt to net operating profit is –0.8 x ( after taxes )
  • Median industry NOPAT 1 x
  • Cash as a percentage of market cap was 8.4 %
  • Prior year growth 6 %
  • Current year growth is at 8.2 %
  • Price objective: $40

Varian Medical Systems

Varian Medical Systems

  • Net debt to net operating profit is –1.5 x ( after taxes )
  • Median industry NOPAT -0.4 x
  • Cash as a percentage of market cap was 22.3 %
  • Prior year growth 11.4 %
  • Current year growth is at 6.6 %
  • Price objective: $140

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