Go back to the basics. It's a phrase we have all heard a million times, but sometimes we forget. Keeping it simple and opting for the tried and true has a legitimate place in the investing world. With this in mind, we focused on dividend stocks in the basic materials sector and ran a screen for profitability and liquidity. Our short list today includes companies that have produced consistently strong profits while maintaining high levels of liquidity, which has translated into reliable payouts for shareholders. Take a look to see if our findings speak to you.
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
... Read the rest at SeekingAlpha.com
No comments:
Post a Comment