These 8 Stocks Beat Warren Buffett's Portfolio Return Easily

Warren Buffett is one of the most trusted investors in the world. When he put money on the table, many institutional investors follow his moves and discover if they could make any money with the stocks he has chosen.

When I look at the recent earnings figures of some of his investments, I saw that many stocks reported results not in-line with investor’s expectations. As a result, they got sold massively out.

IBM, Coca Cola, Tesco, Exxon and now diabetes drug maker Sanofi who lost yesterday nine percent. Are these long-term opportunities or will they run flat in the future? I don’t know but what I know is that some of the past results of those companies are not comparable to the current economic environment.

The market has many great companies to offer which have doubled sales in the past decade and paid 40 percent of the current stock price in dividends over the recent ten years. That’s a good number in my view.

Today, when the markets have recovered, I start a new screen of high-quality dividend stocks with attractive fundamentals. I know that it is hard to find cheap companies in highly valuated markets but sometimes we must be creative to calculate the real values.

Below are eight stock ideas with double digit-expected earnings per share growth figures for the next five years. They have also a lower beta than the overall market and acceptable debt-to-equity ratios.

I’ve compiled many stocks from different sectors and industries in order to create a good diversification. What do you think about my new ideas? Are they good enough to buy or do you still have some of them? Please let me know and thank you for reading and commenting.

These are my results:

#1 Automatic Data Processing (NASDAQ:ADP) has a market capitalization of $36.86 billion. The company employs 61,000 people, generates revenue of $12.206 billion and has a net income of $1.502 billion.

Automatic Data Processing’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.559 billion. The EBITDA margin is 20.97 percent (the operating margin is 18.09 percent and the net profit margin 12.31 percent).

Financials: The total debt represents 6.82 percent of Automatic Data Processing’s assets and the total debt in relation to the equity amounts to 32.75 percent. Due to the financial situation, a return on equity of 23.37 percent was realized by Automatic Data Processing.

Twelve trailing months earnings per share reached a value of $3.11. Last fiscal year, Automatic Data Processing paid $1.83 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.83, the P/S ratio is 3.05 and the P/B ratio is finally 5.56. The dividend yield amounts to 2.49 percent and the beta ratio has a value of 0.85. – See #2 – #9 here: These 8 Stocks Beat Warren Buffett’s Portfolio Return Easily…