Dividend-News

3 Highly Liquid Dividend Stocks With Strong Sources Of Profitability

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  Published Thu, 09 Aug 2012 02:53:13 -0400 on Seeking Alpha
  

  
  

  Do you prefer stocks that pay part of their returns in dividends? We ran a screen on dividend stocks that you might be interested in. We began by screening for highly liquid dividend stocks: those paying dividend yields above 2%, sustainable payout ratios below 50%, and those 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 leverage, (i.e. decreasing Asset/Equity ratio) •Improving... Read more
  

  Stock name									ISIN	Last trade		P/E	Earnings/Share	Dividend/Share	Dividend yield
  KRONOS WORLDWIDE									US50105F1057	16.28		46.4	0.35	0.60	3.69
  FLEXSTEEL INDUSTRIES									US3393821034	22.20		11.9	1.83	0.60	2.70

  
  

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