These 7 Growth Stocks Have Potential To Make You Rich

7 Growth stocks originally appeared at long-term-investments.blogspot.com. Yesterday, I’ve published a small and very inspiring article about a Chinese couple that made a million with only two trades; fascinating.

Today I’ve run my stock screener for growth stocks with a market capitalization between 2 and 10 billion. Those stocks have a good chance to double if the company grows earnings and sales further.

In order to keep the passive income source alive, I’ve only selected stocks with a positive dividend yield as well as low debt ratios.

My focus excluded also stocks from the financial sector, mining stocks and energy/commodity companies as well. I don’t like those companies because I cannot predict their future. The business is price driven or caused by the skills or talents of the management.

Below are my seven favorites, best dividend paying companies that have doubled sales and earnings over the past ten years.

7 Growth Stocks I like are…

#1 Watsco (NYSE:WSO) has a market capitalization of $3.17 billion. The company employs 4,800 people, generates revenue of $3,743 billion and has a net income of $187.72 million. Watsco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $288.92 million. The EBITDA margin is 7.72 percent (the operating margin is 7.25 percent and the net profit margin 5.01 percent).

Financial Analysis: The total debt represents 13.82 percent of Watsco’s assets and the total debt in relation to the equity amounts to 27.45 percent. Due to the financial situation, a return on equity of 14.94 percent was realized by Watsco. Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, Watsco paid $1.15 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.15, the P/S ratio is 0.84 and the P/B ratio is finally 4.41. The dividend yield amounts to 2.66 percent and the beta ratio has a value of 0.88. – See #2 – #7 here: These 7 Growth Stocks Have Potential To Make You Rich….