In particular, measures like margins can tell you how efficient a company is in converting the sales it generates into profits for shareholders.
One type of margin known as operating margin focuses on an intermediate step in the financial statement, and it's something that you can use to focus on the core elements of a business to see how profitable it is.
The operating margin show us how many of a dollar revenue is profit for paying interest and taxes. The higher the value, the better it is for investors. It tells us also a lot about the market strength of a corporate and their pricing power.
If margins are low, you may own only a small piece of the supply chain and the cake. Remember retailer. They have a damn low margin, which is in general not bad but they offer only a small part of the whole product development and marketing cycle.
They just sell the product. Attached you will find a couple of dividend paying long-term raiser stocks with the highest margin on the market. I observed only the group of Dividend Champions.
Over the next days I will also show you those stocks with the highest net income profit margin. The difference between them and today's results is that they could have less debt. That's one reason why they have higher margins in the end.
Here are the most profitable dividend grower from the Dividend Champions League…
Community Trust Bancorp -- Yield: 3.67%
Community Trust Bancorp (NASDAQ:CTBI) employs 984 people, generates revenue of $144.02 million and has a net income of $46.43 million. The current market capitalization stands at $599.64 million.Community Trust Bancorp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $70.06 million. The EBITDA margin is 39.13% (the operating margin is 36.28% and the net profit margin 25.93%).
Financials: The total debt represents 8.10% of Community Trust Bancorp assets and the total debt in relation to the equity amounts to 66.48%. Due to the financial situation, a return on equity of 10.06% was realized by Community Trust Bancorp.
Twelve trailing months earnings per share reached a value of $2.66. Last fiscal year, Community Trust Bancorp paid $1.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.79, the P/S ratio is 3.31 and the P/B ratio is finally 1.25. The dividend yield amounts to 3.67%.
Stock Charts:
 |
| Long-Term Stock Price Chart of Community Trust Bancorp (CTBI) |
 |
| Long-Term Dividend Payment History of Community Trust Bancorp (CTBI) |
 |
| Long-Term Dividend Yield History of Community Trust Bancorp (CTBI) |
First Financial -- Yield: 3.06%
First Financial (NASDAQ:THFF) employs 896 people, generates revenue of $108.68 million and has a net income of $30.20 million. The current market capitalization stands at $407.29 million.First Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $46.31 million. The EBITDA margin is 32.23% (the operating margin is 28.25% and the net profit margin 21.02%).
Financials: The total debt represents 1.14% of First Financial assets and the total debt in relation to the equity amounts to 8.25%. Due to the financial situation, a return on equity of 7.51% was realized by First Financial.
Twelve trailing months earnings per share reached a value of $2.35. Last fiscal year, First Financial paid $0.98 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.64, the P/S ratio is 2.82 and the P/B ratio is finally 0.99. The dividend yield amounts to 3.06%.
Stock Charts:
 |
| Long-Term Stock Price Chart of First Financial (THFF) |
 |
| Long-Term Dividend Payment History of First Financial (THFF) |
 |
| Long-Term Dividend Yield History of First Financial (THFF) |
Tompkins Financial -- Yield: 2.80%
Tompkins Financial (NYSEMKT:TMP) employs 921 people, generates revenue of $188.75 million and has a net income of $58.55 million. The current market capitalization stands at $970.90 million.Tompkins Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $100.89 million. The EBITDA margin is 41.98% (the operating margin is 36.42% and the net profit margin 24.36%).
Financials: The total debt represents 12.48% of Tompkins Financial assets and the total debt in relation to the equity amounts to 137.92%. Due to the financial situation, a return on equity of 11.48% was realized by Tompkins Financial.
Twelve trailing months earnings per share reached a value of $3.87. Last fiscal year, Tompkins Financial paid $1.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.47, the P/S ratio is 3.94 and the P/B ratio is finally 1.82. The dividend yield amounts to 2.80%.
Stock Charts:
 |
| Long-Term Stock Price Chart of Tompkins Financial (TMP) |
 |
| Long-Term Dividend Payment History of Tompkins Financial (TMP) |
 |
| Long-Term Dividend Yield History of Tompkins Financial (TMP) |
1st Source Corporporation -- Yield: 2.32%
1st Source Corporporation (NASDAQ:SRCE) employs 1,150 people, generates revenue of $184.68 million and has a net income of $57.49 million. The current market capitalization stands at $853.62 million.1st Source Corporporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $118.99 million. The EBITDA margin is 47.63% (the operating margin is 35.45% and the net profit margin 23.01%).
Financials: The total debt represents 6.00% of 1st Source Corporporation assets and the total debt in relation to the equity amounts to 48.34%. Due to the financial situation, a return on equity of 9.05% was realized by 1st Source Corporporation.
Twelve trailing months earnings per share reached a value of $2.17. Last fiscal year, 1st Source Corporporation paid $0.67 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.43, the P/S ratio is 3.35 and the P/B ratio is finally 1.26. The dividend yield amounts to 2.32%.
Stock Charts:
 |
| Long-Term Stock Price Chart of 1st Source Corporporation (SRCE) |
 |
| Long-Term Dividend Payment History of 1st Source Corporporation (SRCE) |
 |
| Long-Term Dividend Yield History of 1st Source Corporporation (SRCE) |
 |
| 15 Long-Term Dividend Grower With The Highest Operating Margin (click to enlarge) |
