Dividend-News

4 Highly Liquid Dividend Stocks With Strong Sources Of Profitability

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  Published Sun, 17 Jun 2012 04:30:41 -0400 on Seeking Alpha
  

  
  

  Do you like to be able to rely on a stock's dividend income? For ideas on how to start your own dividend stock search, we ran a screen. We began by screening for stocks paying dividend yields above 2% and sustainable payout ratios below 50%. We then screened for stocks with strong liquidity, with current ratios above 3. The current ratio is current assets/current liabilities, so ratios above 3 indicate the company has at least 3 times the liquid assets to cover their short-term liabilities. Then to analyze these companies' profitability, we ran DuPont analysis on the names. DuPont analyzes profitability by breaking up return on equity (net income/equity) into three components: ROE = (Net Profit/Equity) = (Net profit/Sales)*(Sales/Assets)*(Assets/Equity) = (Net Profit margin)*(Asset turnover)*(Leverage ratio) Because increases in net margin and asset turnover are considered good things, DuPont focuses on companies with these positive characteristics: Increasing ROE along with, •Decreasing... Read more
  

  Stock name									ISIN	Last trade		P/E	Earnings/Share	Dividend/Share	Dividend yield
  KRONOS WORLDWIDE									US50105F1057	16.20		46.0	0.35	0.60	3.70
  FLEXSTEEL INDUSTRIES									US3393821034	22.65		12.1	1.83	0.60	2.65
  SENSIENT TECHNOLOGIES									US81725T1007	41.09		17.7	2.34	0.92	2.24

  
  

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