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.
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...
