Five Stocks With Great 10-Year Earnings Records

By Aryeh Katz | November 18, 2009 AAA

It's not easy to find companies that have consistently grown earnings for a decade or more and still offer investors a reasonable yield. Yet a handful of names have managed that feat. Below we list five of them. Moreover, they also trade with reasonable price/earnings ratios (P/E) and either at or only slightly above book value.

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International Shipholding Corp.
(NYSE: ISH) is a transport company that has seen tremendous growth for the last decade, expanding earnings at 15.35% per year over that time frame. The company also pays an annual 5.6% dividend and sells at just above book value; price-to-book ratio is 1.17. Price-to-sales ratio is also a very competitive 0.75. The stock is up more than 100% since bottoming in March.

SK Telecom Co. (NYSE: SKM) is a South Korean wireless communications giant whose ADR fetches investors an 8% annual dividend yield and trades with a P/E of 10.6 times last year's earnings. Price/book is 1.21 and price/sales, 0.96. The company has grown earnings at a 12.9% rate for the last 10 years.

A Closed-End Investment Fund
Templeton's Global Income Fund (NYSE: GIM) has also managed to achieve stellar 10-year earnings growth, coming in at 12.21% annually since 1999. GIM pays an annual 5.2% dividend and trades with a P/E of 7. Price/book is 1.11. The closed-end fund invests primarily in global income-producing securities, including sovereign debt.

FirstEnergy Corp. (NYSE: FE) is an electricity service provider with a 10-year earnings growth record of 8.41%. The company's shares trade with a P/E of 11 and offer a 5.2% annual yield. Price/book is below the industry average at 1.53, and price/sales is 0.79.

OceanFirst Financial Corp. (Nasdaq: OCFC) is a New Jersey-based, federally chartered retail savings bank. Over the last 10 years, the company has grown earnings by a 7.1% annual rate. The shares currently trade hands with a P/E of 8.7 and carry a 7.8% dividend per annum. Price/book on the stock is 1.0.

The Wrap
Ten years of high corporate earnings growth is no fluke; these companies have a niche and a management that knows how to exploit it. Investors can feel comfortable leaning on a set of fundamentals like those discussed above. (To learn more, read Steady Growth Stocks Win The Race.)

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