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Showing posts with label POWI. Show all posts
Showing posts with label POWI. Show all posts

13 Dividend Stocks With The Highest Profitable Earnings Growth For The Future

Stocks of companies that initiate dividends tend to fare well. Shares of dividend payers raise an average of 15% in the 12 months following the announcement of the initial disbursement. 

Growing companies have better things to do with their money than dole it out as dividends. Reinvesting in the business is usually a better idea, especially if a firm is racking up high returns on invested capital (a measure of profitability). 

But a corporate that doesn’t pay money to shareholders is nothing worth. Only the stock market could reward the rising business structure with hopes to get all of the invested money back.

I'm a big fan of dividends and share buybacks. Better is the cash source of the company. If it generates tons of cash and don't need to put most of the money back into the company, it's one of the best investments if they have a stable business with big competitive advances.

Growth combined with value and predictable business models is one of my key premises when I put money into stocks.

Today I like to highlight those dividend paying stocks with the highest growth expectations for the next five years. Especially cyclic stocks have enormous EPS growth rates when they come out of their business cycle.

I like to exclude those companies by implementing a positive sales growth rule of the past years. In addition, the company should not have unsustainable high debt and a double digit Return on Investment ratio. Only a profitable growth makes sense over the long-term.

13 companies fulfilled these criteria of which four yield over 3 percent. Attached you can find the full list of the results with some fundamentals. I hope you find new inpirations and get a broader view on the market. If you like my articles, you can easily subscribe my free newsletter via RSS.

Here are the top yielding results...