Wednesday, July 11, 2012

4 Cash Heavy Dividend Stocks Fueled On Strong Earnings


For dividend investors, high yields are always nice, but they're even better when they come from companies with solid fundamentals. Today we focused on dividend stocks that have built up strong cash reserves from their ability to continually return profits. Our list is diverse, but we think you'll find it interesting.Return on Assets [ROA] illustrates how much a company is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well, it lets investors see how efficient and effective management is at generating earnings from the company's assets. While most management teams can probably make money by throwing money at an issue very few can make very large profits with little investment.The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows
... Read the rest at SeekingAlpha.com

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