Dividend Champions Smackdown XII: Price/Sales Edition

In previous installments of the Smackdown series, I screened the Dividend Champions list of companies that have paid higher dividends for at least 25 straight years (which can be found here) using factors such as yield, payout ratio and, most recently, the PEG ratio. This time, I decided to start with the Price/Sales ratio, which compares a stock's price to its sales on a per-share basis. This ratio is a basic measure of how the stock market is valuing a company's revenues, which have to maintain a certain strength and momentum in order for the company to continue to be profitable (and to pay dividends). The lower the ratio is, the better. So I screened as follows: Step 1: Sort the companies by Price/Sales ratio (column X), from low to high. There were 22 Champions with a ratio of less than 1, which is about half the average for the... Read more