The nice part about having no debt is a) how relatively easy it is to maneuver when business conditions change and b) how much better the CEO’s brain works with the reduced anxiety. It might be contended that the challenging condition of owing a great deal of money ignites innovation but good luck when they finally raise rates.
No artificial intelligence is required to realize this as beneficial, generally, and none is needed to identify those stocks benefitting from the no (or tiny) debt condition. A simple screen for “dividend-paying” and “less than .10 debt to equity” uncovers these 4 names. I added “above the 200-day moving average,” for what it’s worth.
4 Dividend Paying Stocks With Zero Debt (Or Close).
Cal-Maine FoodsCALM
is “the largest producer of fresh shell eggs in the United States,” according to the company website. The farm products outfit has been in business since 1957. With corporate headquarters in Ridgeland, Mississippi, market capitalization comes to $2.88 billion.
The stock trades with a price-earnings ratio of 6.35 and at 1.17 times its book value. This year’s earnings are off by 72%. Over the past 5 years, earnings have grown at a 42% pace. The company has no debt, long-term or otherwise. Cal-Maine pays a 5.23% dividend.
The daily price chart looks like this:
Epsilon Energy is an oil and gas exploration company with a market capitalization of $181 million. With corporate headquarters in Houston, Texas, the company also maintains offices in Calgary, Alberta, Canada. Among other operations, Epsilon owns 7,200 acres in the Anadarko Basin of Northwest Oklahoma.
Over the past 5 years, earnings growth is 4.92%. Now trading at 1.19 times book value, the stock’s price-earnings ratio is 17. The company has no long-term debt and the overall debt-to-equity ratio is .01. Epsilon Energy offer investors a dividend of 4.63%. Average daily volume is a light 60,360 shares.
The daily price chart is here:
RPC is an oil and gas equipment and services company. The Atlanta, Georgia-based business was spun off from RollinsROL
Inc. in 1984. RPC describes itself as “a holding company for several oilfield service operating companies.” A component of the Russell 2000 index, market cap is $1.67 billion.
Earnings this year are down by 17% and up over the past 5 years by 2.02%. The debt-to-equity ratio is .02. The company pays a 2.06% dividend. With a short float now at 14.62%, a short-covering rally — should it ever arise — might fuel an advance in price. The price-earnings ratio is 8.65 and the stock trades at 1.63 times book.
Here’s the daily price chart:
Vipshop Holdings is an e-commerce retail business based in China. The company offers a broad array of products including sportswear, women’s wear, men’s wear, footwear and financing services. It’s been in business since 2008 from corporate headquarters in Guangzhou.
Market capitalization is $7.72 billion. With a price-earnings ratio of 8.16, the stock is available for purchase at 1.73 times book. This year’s earnings are up by 6.87% and up over the past 5 years by 33%. The debt-to-equity ratio is .06. Vipshop pays a dividend of 2.59%.
The daily price chart is here:
