There may be no surer way of measuring a company's strength than checking their ten year revenue and EPS growth rates. One or two quarters - or even a good year or two - can mask what's essentially shoddy management and a stroke of luck. A ten year record is not so easy to fudge.

IN PICTURES: 5 "New" Rules For Safe Investing

But what about companies with solid ten year records that also boast great dividends and trade with low earnings multiples? And what if they also traded at or below book value? Would you be interested in such stocks? Would they make a nice fit in your portfolio? Read on to learn about three such companies that have also been on the move of late.

Foreign Based Cash Flow King
Vodafone Group Plc (Nasdaq:VOD) is Britain's mobile communications giant, with equity interests in over 30 countries worldwide. The company's stock is up over 25% in the last three months, a far better showing than the SPDR International Telecommunications ETF (NYSE:IXP), which has tacked on just over 13% in the same period. Vodafone pays a 7.0% dividend and trades with a P/E of 9.82.

But more exciting is the company's long term growth record. In the last decade, management has grow revenues at an 18.9% clip while EPS growth has averaged 21.62% over that same period.

Vodafone also trades at a fraction of the company's breakup value. Price to book on the shares is just 0.94.

Banking Matador
Banco Santander, SA (NYSE:STD) is a global banking operation with headquarters located in Madrid. Shares in the company's stock have soared in the last three months, up 40%. That compares favorably compared to the iShares S&P Global Financial Sector ETF (NYSE:XLF), which gained just 2% over the period. Banco Santander shares pay a very healthy 5.6% annual dividend, while the P/E ratio on the shares is just 9.47.

STD has grown revenues and EPS at very impressive rates over the last decade: 10.3% and 9.19% respectively. Much of the company's recent growth can be attributed to acquisitions it has made or is currently in the process of making.

Cincinnati Financial Corp (Nasdaq:CINF) pays a dividend of 5.7% and trades at a multiple of 9 times last year's earnings. Price to book for the stock is 0.97.

Over the last decade CINF has posted 6.25% annual growth in revenues and 6.76% EPS growth.

Bottom Line
Ten year growth records that are positive are not an easy thing to come by. But when they're coupled with great yields and respectable P/E and P/B ratios, they become irresistible buys. (Learn not only what compound annual growth rate is but also what its benefits, limitations and dangers are. See CAGR: The Good, The Bad And The Ugly.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  2. Investing Basics

    Top Tips for Diversifying with Exotic Currencies

    Is there an opportunity in exotic currencies right now, or are you safer sticking to the major ones?
  3. Mutual Funds & ETFs

    The 3 Biggest Mutual Fund Companies in the US

    Compare and contrast the rise of America's big three institutional asset managers: BlackRock Funds, The Vanguard Group and State Street Global Advisors.
  4. Stock Analysis

    3 Stocks that Are Top Bets for Retirement

    These three stocks are resilient, fundamentally sound and also pay generous dividends.
  5. Professionals

    5 Top-Rated Funds for Your Retirement Portfolio

    Mutual funds are a good choice for emotional investors. Here are five popular funds to consider.
  6. Investing News

    Are Stocks Cheap Now? Nope. And Here's Why

    Are stocks cheap right now? Be wary of those who are telling you what you want to hear. Here's why.
  7. Investing News

    4 Value Stocks Worth Your Immediate Attention

    Here are four stocks that offer good value and will likely outperform the majority of stocks throughout the broader market over the next several years.
  8. Investing News

    These 3 High-Quality Stocks Are Dividend Royalty

    Here are three resilient, dividend-paying companies that may mitigate some worry in an uncertain investing environment.
  9. Stock Analysis

    An Auto Stock Alternative to Ford and GM

    If you're not sure where Ford and General Motors are going, you might want to look at this auto investment option instead.
  10. Mutual Funds & ETFs

    The 4 Best Buy-and-Hold ETFs

    Explore detailed analyses of the top buy-and-hold exchange traded funds, and learn about their characteristics, statistics and suitability.
  1. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  2. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  3. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  4. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  5. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  6. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!