Of course, the hardest part of investing is identifying high-quality companies and separating them from lesser-quality ones.
One great way to do this is find companies with high returns on invested capital, or ROIC. ROIC tells us how good management is at converting capital into profits that can go toward paying secure and growing dividends over time.
Better yet, studies show that over the long term a company's total returns generally track its ROIC, which means that dividend growth companies with high ROICs are good choices for your diversified dividend portfolio.
Let's take a look at 10 high-quality, high-ROIC dividend growth names, all of which have bright futures and can be great allies in reaching your own financial goals, such as living off dividends in retirement.
These are the results...
Boeing -- Yield: 3.65%
Boeing (NYSE:BA) employs 161,400 people, generates revenue of $96,114.00 million and has a net income of $5,176.00 million. The current market capitalization stands at $95.24 billion.Boeing’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,751.00 million. The EBITDA margin is 9.10% (the operating margin is 7.74% and the net profit margin 5.39%).
Financials: The total debt represents 10.55% of Boeing assets and the total debt in relation to the equity amounts to 157.28%. Due to the financial situation, a return on equity of 68.96% was realized by Boeing.
Twelve trailing months earnings per share reached a value of $6.57. Last fiscal year, Boeing paid $3.82 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.68, the P/S ratio is 1.00 and the P/B ratio is finally 16.38. The dividend yield amounts to 3.65%.
Stock Charts:
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| Long-Term Stock Price Chart of Boeing (BA) |
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| Long-Term Dividend Payment History of Boeing (BA) |
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| Long-Term Dividend Yield History of Boeing (BA) |
Public Storage -- Yield: 3.63%
Public Storage (NYSE:PSA) employs 5,300 people, generates revenue of $2,381.70 million and has a net income of $1,317.69 million. The current market capitalization stands at $37.90 billion.Public Storage’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,658.02 million. The EBITDA margin is 69.61% (the operating margin is 51.73% and the net profit margin 55.33%).
Financials: The total debt represents 3.26% of Public Storage assets and the total debt in relation to the equity amounts to 3.48%. Due to the financial situation, a return on equity of 20.50% was realized by Public Storage.
Twelve trailing months earnings per share reached a value of $6.52. Last fiscal year, Public Storage paid $6.50 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 33.79, the P/S ratio is 16.05 and the P/B ratio is finally 7.45. The dividend yield amounts to 3.63%.
Stock Charts:
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| Long-Term Stock Price Chart of Public Storage (PSA) |
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| Long-Term Dividend Payment History of Public Storage (PSA) |
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| Long-Term Dividend Yield History of Public Storage (PSA) |
Paychex -- Yield: 3.00%
Paychex (NASDAQ:PAYX) employs 13,100 people, generates revenue of $2,951.90 million and has a net income of $756.80 million. The current market capitalization stands at $21.92 billion.Paychex’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,261.70 million. The EBITDA margin is 42.74% (the operating margin is 38.84% and the net profit margin 25.64%).
Financials: The total debt represents 0.00% of Paychex assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 40.94% was realized by Paychex.
Twelve trailing months earnings per share reached a value of $2.14. Last fiscal year, Paychex paid $1.68 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.65, the P/S ratio is 7.46 and the P/B ratio is finally 11.58. The dividend yield amounts to 3.00%.
Stock Charts:
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| Long-Term Stock Price Chart of Paychex (PAYX) |
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| Long-Term Dividend Payment History of Paychex (PAYX) |
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| Long-Term Dividend Yield History of Paychex (PAYX) |
United Parcel Services -- Yield: 2.71%
United Parcel Services (NYSE:UPS) employs 266,000 people, generates revenue of $58,363.00 million and has a net income of $4,844.00 million. The current market capitalization stands at $99.53 billion.United Parcel Services’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,772.00 million. The EBITDA margin is 16.74% (the operating margin is 13.14% and the net profit margin 8.30%).
Financials: The total debt represents 37.41% of United Parcel Services assets and the total debt in relation to the equity amounts to 580.32%. Due to the financial situation, a return on equity of 210.11% was realized by United Parcel Services.
Twelve trailing months earnings per share reached a value of $5.60. Last fiscal year, United Parcel Services paid $2.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.52, the P/S ratio is 1.72 and the P/B ratio is finally 41.24. The dividend yield amounts to 2.71%.
Stock Charts:
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| Long-Term Stock Price Chart of United Parcel Services (UPS) |
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| Long-Term Dividend Payment History of United Parcel Services (UPS) |
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| Long-Term Dividend Yield History of United Parcel Services (UPS) |
Fastenal Company -- Yield: 2.54%
Fastenal Company (NASDAQ:FAST) employs 19,864 people, generates revenue of $3,869.19 million and has a net income of $516.36 million. The current market capitalization stands at $13.38 billion.Fastenal Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $913.94 million. The EBITDA margin is 23.62% (the operating margin is 21.42% and the net profit margin 13.35%).
Financials: The total debt represents 14.41% of Fastenal Company assets and the total debt in relation to the equity amounts to 20.26%. Due to the financial situation, a return on equity of 27.79% was realized by Fastenal Company.
Twelve trailing months earnings per share reached a value of $1.72. Last fiscal year, Fastenal Company paid $1.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.51, the P/S ratio is 3.53 and the P/B ratio is finally 7.59. The dividend yield amounts to 2.54%.
Stock Charts:
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| Long-Term Stock Price Chart of Fastenal Company (FAST) |
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| Long-Term Dividend Payment History of Fastenal Company (FAST) |
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| Long-Term Dividend Yield History of Fastenal Company (FAST) |
3M -- Yield: 2.49%
3M (NYSE:MMM) employs 89,446 people, generates revenue of $30,274.00 million and has a net income of $4,841.00 million. The current market capitalization stands at $106.80 billion.3M’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,497.00 million. The EBITDA margin is 28.07% (the operating margin is 22.94% and the net profit margin 15.99%).
Financials: The total debt represents 33.14% of 3M assets and the total debt in relation to the equity amounts to 92.61%. Due to the financial situation, a return on equity of 38.95% was realized by 3M.
Twelve trailing months earnings per share reached a value of $7.94. Last fiscal year, 3M paid $4.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.47, the P/S ratio is 3.54 and the P/B ratio is finally 9.29. The dividend yield amounts to 2.49%.
Stock Charts:
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| Long-Term Stock Price Chart of 3M (MMM) |
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| Long-Term Dividend Payment History of 3M (MMM) |
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| Long-Term Dividend Yield History of 3M (MMM) |
Union Pacific -- Yield: 2.32%
Union Pacific (NYSE:UNP) employs 43,154 people, generates revenue of $21,813.00 million and has a net income of $4,772.00 million. The current market capitalization stands at $85.28 billion.Union Pacific’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,064.00 million. The EBITDA margin is 46.14% (the operating margin is 36.91% and the net profit margin 21.88%).
Financials: The total debt represents 26.01% of Union Pacific assets and the total debt in relation to the equity amounts to 68.60%. Due to the financial situation, a return on equity of 22.78% was realized by Union Pacific.
Twelve trailing months earnings per share reached a value of $4.99. Last fiscal year, Union Pacific paid $2.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.93, the P/S ratio is 3.95 and the P/B ratio is finally 4.28. The dividend yield amounts to 2.32%.
Stock Charts:
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| Long-Term Stock Price Chart of Union Pacific (UNP) |
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| Long-Term Dividend Payment History of Union Pacific (UNP) |
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| Long-Term Dividend Yield History of Union Pacific (UNP) |
Starbucks Corporation -- Yield: 1.78%
Starbucks Corporation (NASDAQ:SBUX) employs 254,000 people, generates revenue of $21,315.90 million and has a net income of $2,818.90 million. The current market capitalization stands at $81.23 billion.Starbucks Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,883.80 million. The EBITDA margin is 22.91% (the operating margin is 19.57% and the net profit margin 13.22%).
Financials: The total debt represents 25.14% of Starbucks Corporation assets and the total debt in relation to the equity amounts to 61.22%. Due to the financial situation, a return on equity of 48.16% was realized by Starbucks Corporation.
Twelve trailing months earnings per share reached a value of $1.90. Last fiscal year, Starbucks Corporation paid $0.85 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.70, the P/S ratio is 3.85 and the P/B ratio is finally 13.98. The dividend yield amounts to 1.78%.
Stock Charts:
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| Long-Term Stock Price Chart of Starbucks Corporation (SBUX) |
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| Long-Term Dividend Payment History of Starbucks Corporation (SBUX) |
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| Long-Term Dividend Yield History of Starbucks Corporation (SBUX) |
Canadian National Railway -- Yield: 1.67%
Canadian National Railway (NYSE:CNI) employs 15,306 people, generates revenue of $9,341.48 million and has a net income of $2,620.74 million. The current market capitalization stands at $52.08 billion.Canadian National Railway’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,758.52 million. The EBITDA margin is 50.94% (the operating margin is 41.76% and the net profit margin 28.05%).
Financials: The total debt represents 28.64% of Canadian National Railway assets and the total debt in relation to the equity amounts to 69.75%. Due to the financial situation, a return on equity of 24.90% was realized by Canadian National Railway.
Twelve trailing months earnings per share reached a value of $3.35. Last fiscal year, Canadian National Railway paid $0.93 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.32, the P/S ratio is 5.59 and the P/B ratio is finally 4.83. The dividend yield amounts to 1.67%.
Stock Charts:
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| Long-Term Stock Price Chart of Canadian National Railway (CNI) |
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| Long-Term Dividend Payment History of Canadian National Railway (CNI) |
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| Long-Term Dividend Yield History of Canadian National Railway (CNI) |
Mastercard -- Yield: 0.85%
Mastercard (NYSE:MA) employs 11,300 people, generates revenue of $9,667.00 million and has a net income of $3,808.00 million. The current market capitalization stands at $111.86 billion.Mastercard’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,372.00 million. The EBITDA margin is 55.57% (the operating margin is 52.53% and the net profit margin 39.39%).
Financials: The total debt represents 20.11% of Mastercard assets and the total debt in relation to the equity amounts to 54.21%. Due to the financial situation, a return on equity of 59.42% was realized by Mastercard.
Twelve trailing months earnings per share reached a value of $3.62. Last fiscal year, Mastercard 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 28.67, the P/S ratio is 11.70 and the P/B ratio is finally 19.21. The dividend yield amounts to 0.85%.
Stock Charts:
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| Long-Term Stock Price Chart of Mastercard (MA) |
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| Long-Term Dividend Payment History of Mastercard (MA) |
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| Long-Term Dividend Yield History of Mastercard (MA) |