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. Stock Analysis

    Analyzing Altria's Return on Equity (ROE) (MO)

    Learn about Altria Group's return on equity (ROE) and analyze net profit margin, asset turnover and financial leverage to determine what is causing its high ROE.
  2. Investing Basics

    Building My Portfolio with BlackRock ETFs and Mutual Funds (ITOT, IXUS)

    Find out how to construct the ideal investment portfolio utilizing BlackRock's tools, resources and its popular low-cost exchange-traded funds (ETFs).
  3. Investing News

    Icahn's Bet on Cheniere Energy: Should You Follow?

    Investing legend Carl Icahn continues to lose money on Cheniere Energy, but he's increasing his stake. Should you follow his lead?
  4. Stock Analysis

    Analyzing Google's Return on Equity (ROE) (GOOGL)

    Learn about Alphabet's return on equity. How has its ROE changed over time, how does it compare to its peers and what factors are driving ROE for the company?
  5. Investing News

    Is Buffett's Bet on Oil Right for You? (XOM, PSX)

    Oil stocks are getting trounced, but Warren Buffett still likes one of them. Should you follow the leader?
  6. Investing

    3 Things About International Investing and Currency

    As world monetary policy continues to diverge rocking bottom on interest rates while the Fed raises them, expect currencies to continue their bumpy ride.
  7. Investing News

    Chipotle Served with Criminal Probe

    Chipotle's beat muted expectations and got a clear bill from the CDC, but it now appears that an investigation into its E.coli breakout has expanded.
  8. Stock Analysis

    Analyzing Sprint Corp's Return on Equity (ROE) (S)

    Learn about Sprint's return on equity. Find out why its ROE is negative and how asset turnover and financial leverage impact ROE relative to Sprint's peers.
  9. Stock Analysis

    Why Alphabet is the Best of the 'FANGs' for 2016

    Alphabet just impressed the street, but is it the best FANG stock?
  10. Investing News

    A 2016 Outlook: What January 2009 Can Teach Us

    January 2009 and January 2016 were similar from an investment standpoint, but from a forward-looking perspective, they were very different.
RELATED FAQS
  1. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  2. Do ETFs pay capital gains?

    Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering ... Read Full Answer >>
  3. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>
  4. Are Vanguard ETFs commission-free?

    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>
  5. Do Vanguard ETFs require a minimum investment?

    Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment ... Read Full Answer >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center