Dividend-News

5 Stocks With Rapid Dividend Growth And Strong Sources Of Profitability

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  Published Thu, 27 Oct 2011 06:47:04 -0400 on Seeking Alpha
  

  
  

  If you’re looking for ideas on how to search for dividend stocks, you may be interested in this list. We ran DuPont analysis on the sources of profitability for stocks seeing rapid dividend growth year-over-year. ROE profitability can be broken up into three components such that increases in ROE can be attributed to those components. ROE = (Net Profit/Equity) = (Net profit/Sales)*(Sales/Assets)*(Assets/Equity) = (Net Profit margin)*(Asset turnover)*(Leverage ratio) Analyzing the sources of returns for a company, we can focus on companies with the following characteristics: Increasing ROE along with, • Decreasing leverage, i.e. decreasing Asset/Equity ratio • Improving asset use efficiency (i.e. increasing Sales/Assets ratio) and improving net profit margin (i.e. increasing Net Income/Sales ratio) Companies passing all requirements are thus experiencing increasing profits due to operations and not to increased use of leverage. ‪Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for... Read more
  

  Stock name									ISIN	Last trade		P/E	Earnings/Share	Dividend/Share	Dividend yield
  DOW CHEMICAL									US2605431038	34.62		42.0	0.81	1.28	3.70
  EL PASO ELECTRIC									US2836778546	36.06		15.0	2.37	1.06	2.94
  INNOPHOS									US45774N1081	49.11		18.6	2.63	1.40	2.85
  KLA-TENCOR									US4824801009	56.39		14.4	3.87	1.60	2.84
  INTERPUBLIC GROUP OF COMPANIES									US4606901001	14.79		18.0	0.81	0.30	2.03

  
  

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