Sunday, July 15, 2012

4 Profitable Dividend Stocks Maintaining High Cash Reserves


Are you a dividend investor searching for stocks with moderate to high yields? One great place to search is among those that can sustain their payouts over time, due to strong sources of profitability. Even better are stocks that have built up strong cash reserves, since it's cash that will support a company during lulls in demand. Today we screened for stocks of this nature, and came up with a short but interesting list.Return on Equity [ROE] is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage. Why does this matter? Simply put, it allows investors to get a real picture of how the company is generating these returns and helps identify parts of the company that may be underperforming.EPS growth (earnings
... Read the rest at SeekingAlpha.com

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