30 High-Margin Stocks With Strong Competitive Advantages

Investing into high margin companies could end in a better return. The underlying thought is simple: A companies that works on higher margin can survive a market correction more likely and become stronger after a recession.

Attached, you can find a list of companies with high profit margins. Those could be a first step to start a further research. 

In general, the margin tells us something about the competition as well as the business model. 

High margins mean that the corporate make many business processing steps by it. The competition is less hard. Products are unique and could have a market barrier.

Here is the selection of high-margin stocks...

A Quick View On The Dogs Of The Nasdaq 100

Recently, I wrote about the current Dogs of the Dow and gave you a nice overview about the cheapest and highest yielding stocks from the large cap index Dow Jones that offer growth potential.

Some of you have agreed by the names I've introduced these but the index members of the Dow Jones still offer true values and long-term growth.

However, today I would like to share the Dogs of the NASDAQ with you.

Right, the cheapest and highest yielding stocks from the technology exchange. A decent number of stocks also pay dividends there. In total, there are 55 dividend stocks, more than half of the members.

The initial yield of the technology dominated index starts at 0.75% and ends at 6.99%, paid by Mattel.

Check the top Dogs of the NASDAQ here:

12 Oversold 3%+ Yielding Dividend Stocks As Buying Opportunity

I love it when the market is anxious and everybody sells stocks. That's the moment when panic and emotions rule the manner of actors.

But when stocks fall, it does not necessary mean that stocks are bad. Those moments can change into a great buy opportunity for long-term investors.

When the markets are in panic, investors will sell their stocks below the intrinsic value. Today I like to introduce a few dividend stocks that seem oversold by several technical indicators. I've only focused my efforts on higher capitalized stocks with regular dividend payments.

Dividends are small risk compensation. For sure, if you get only 0.5 percent per quarter, it's a very small compensation but if you buy only stocks with a solid, valuable and predictable business, your risk compensation develops to yield compensation.

These are the top results....

10 Undervalued Dividend Stocks With A High Degree Of Safeness

Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk.

Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk. Each company suitable for the Defensive Investor is also suitable for Enterprising Investors.

If you are a defensive investor, you should look at the following selection of stocks. I've selected the highest dividend yields among the undervalued companies for defensive dividend stock investors. 

Yield was not a high-rated criterion. More important were a strong financial position and potential of growth in general. 

Here are the 10 results...

14 High-Yielding Value Picks

Value investors are focused on deep values. They can identify values by looking at the cashflows from the company. If they are strong and reliable, there seems to be good values.

What if we combine the value with high yields in the future? I've tried to select several stocks that are classified by Reuters with high yields in the future.

In addition, those stocks have a good finance situation, a very solid and predictable business and comfortable profitability. 14 stocks fulfilled my criteria. Attached is also a sheet of all results with the most important fundamentals.

These are the results....

10 Highest Yielding NASDAQ 100 Stocks Each Yielding Over 3%

The Nasdaq 100 has historically been "overweight" the technology sector as compared to the S&P 500. The highest yielding Nasdaq 100 stocks are no exception. Eight out of the top highest yielding Nasdaq 100 stocks are in the technology sector.

I personally like technology stocks because of their high free cash flows but the great lack is the unpredictability of the technology change.

Each well established technology could be useless within the next five years. It's great potential for new companies but also a big threat for established well proven stocks.

Below is a detailed overview of the 10 top yielding stocks, each growth investor with need of cash income should know.

These are the results:

Highest Yielding Dividend Stocks From Nasdaq 100

Did you notice that the Nasdaq hit the 5,000 yesterday? 

Congratulations, what a number. The Nasdaq index compromises many growth stocks, more than the Dow Jones did. 

That's also one of the reasons why the index is well-know for technology and innovation firms. 

But the technology sector isn't particularly known for finding good dividends. Indeed, many of the most exciting technology stocks don't pay a dividend at all.

Assuming they're profitable (an assumption that doesn't always hold), technology companies often funnel their cash back into their business rather than pay shareholders a dividend.

You may also like my articles related to technology dividend stocks. There are a few great ideas in it. Cash, innovations and growth are main topics.

Today I would like to celebrate the 5,000 mark by highlighting some of the highest yielding stocks from the index.

Around half of the index members pay a dividend and of them has a high yield of more than 5 percent. Attached is a list of the highest yielding top 20 stocks from the Nasdaq 100.

Here are my favorites in detail: 

Dividends And Growth Combined: 5 Top Stock Picks That Could Outperform The Market

Who’s not dreaming about a long-term orientated portfolio that increases in value and pays you each year a higher dividend that beats inflation? I do!

The good think is that it's possible to create such a big income source with small money. I've also created a virtual portfolio with income focus in order show how dividend growth investing can look like.

Back to my daily stock idea that I often publish on this blog. I've created some ideas what stocks delivered good returns in the past and can also possibly outperform the overall market within the next years. It’s a combination of growth and dividends. These are my main criteria:

- Market cap is greater than $100 million.

- Dividend yield is greater than the dividend yield of the industry.

- The payout ratio is less than 100%.

- Past 5 years dividend growth rate is bigger than the dividend growth of the industry.

- Average annual earnings growth estimates for the next 5 years is greater than 10%.

- Past 5 years EPS growth is greater than the average industry value.

Attached are my five favorite picks with more fundamentals. The screen delivered some more results like the luxury brand company Coach, the German industrial conglomerate Siemens or the home improvement stock Leggett & Platt.

Technology Giant Oracle (ORCL) Becomes A New Stake In Our Portfolio

The markets are hot priced and we must accept that there are no cheap bargains available on the market. 

On the latest trading day of the month, I decided to purchase a new holding company for the Dividend Yield Passive Income Portfolio. 

It was the technology stock Oracle. Like Microsoft, Oracle dominates the application software market for business clients. Databases are core products of Oracle.

Earnings and Dividends of Oracle (ORCL)

The company is not a well-known dividend grower because it invested much money into big acquisitions within the recent years. 

Acquisitions were the main growth driver which boosted sales to a total amount of $37 billion compared to $10 billion a decade before. Earnings increased by a factor of 3.7 during the same period.

I love technology stocks because of the high cash amounts and the strong growing cash flows. Most of the big technology giants started to give money back to shareholders and I’m pretty confident that Oracle will also give back some parts of his wealth.

I purchased 40 shares at $35.20 which resulted in $1,413 total investment amount. The new stake will not deliver high dividends due to the low payout of Oracle. 

In total, the stake should bring around $17 per year but has great potential to grow over the next years. The current dividend payout ratio is at 30 percent.

More interestingly is the cheap valuation of Oracle, measured by a forward P/E of 11.12. With long-term growth perspectives, it’s in my view a solid stock for the portfolio that could deliver growth possibilities at an attractive price.

Most of the big technology companies are real underperformer this year. Oracle is up 12.28 percent year to date but did not outperform major indices. The Dow is up 19.71 percent and the S&P 500 hit the 25 percent recently. 

Latest Portfolio Transactions (Click to enlarge)

Latest Portfolio I (Click to enlarge)

Latest Portfolio II (Click to enlarge)

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For readers who are new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.

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The full portfolio performance amounts to 11.1 percent. That’s an underperformance compared to the major indices but the major goal is not to make quick money in strong rising markets. The aim is to create a long-term orientated portfolio that doubles its income each 10 years.

The underperformance is also reasonable to the slow purchasing process and high cash amounts over the past year which was part of the strategy.

Portfolio Performance (Click to enlarge)

Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield	Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	33.8	3.47	28.90	50	$65.00	$1,869.00
LMT	Lockheed Martin C	15.36	3.32	92.72	20	$95.60	$2,833.40
INTC	Intel Corporation	12.93	3.77	21.27	50	$45.00	$1,192.00
MCD	McDonald's Corpor	17.52	3.21	87.33	25	$78.00	$2,434.25
WU	Western Union Com	11.14	2.97	11.95	100	$50.00	$1,667.00
PM	Philip Morris Int	16.23	4.13	89.76	30	$105.87	$2,566.20
JNJ	Johnson & Johnson	21.18	2.73	69.19	20	$51.80	$1,893.20
MO	Altria Group Inc	14.49	4.85	33.48	40	$72.00	$1,479.20
SYY	Sysco Corporation	20.37	3.31	31.65	40	$44.80	$1,345.20
DRI	Darden Restaurant	19	3.93	46.66	30	$63.00	$1,599.90
CA	CA Inc.	14.06	3.04	21.86	50	$50.00	$1,650.00
PG	Procter & Gamble	21.42	2.81	68.72	25	$59.20	$2,105.50
KRFT	Kraft Foods Group	17.24	3.79	44.41	40	$80.00	$2,124.80
MAT	Mattel Inc.	19.37	3.11	36.45	40	$57.60	$1,850.80
PEP	Pepsico Inc. Com	19.82	2.62	70.88	20	$44.20	$1,689.20
KMB	Kimberly-Clark Co	22.5	2.93	86.82	15	$47.55	$1,637.40
COP	ConocoPhillips Co	11.11	3.72	61.06	20	$52.80	$1,456.00
GIS	General Mills In	18.93	2.81	42.13	30	$42.60	$1,512.90
UL	Unilever PLC Comm	18.94	3.47	39.65	35	$48.83	$1,417.50
NSRGY	NESTLE SA REG SHR	20.16	2.98	68.69	30	$65.31	$2,193.30
GE	General Electric	20.17	2.83	23.39	65	$49.40	$1,732.90
ADP	Automatic Data Pr	27.32	2.17	61.65	25	$43.50	$2,000.50
K	Kellogg Company C	23.28	2.96	61.52	25	$45.00	$1,516.00
KO	Coca-Cola Company	20.83	2.79	38.83	40	$44.80	$1,607.60
RTN	Raytheon Company	15.36	2.41	57.04	20	$43.00	$1,773.60
RCI	Rogers Communicat	12.07	3.77	46.5	50	$84.00	$2,241.50
GPC	Genuine Parts Com	18.35	2.57	77.06	20	$42.12	$1,656.80
TSCDY	TESCO PLC SPONS A	N/A	4.1	17.08	110	$75.79	$1,888.70
APD	Air Products and	23.3	2.54	85.71	15	$41.55	$1,632.45
GSK	GlaxoSmithKline P	20.68	4.59	52.16	30	$72.24	$1,587.60
WMT	Wal-Mart Stores	15.55	2.23	79.25	20	$36.16	$1,620.20
BTI	British American	16.23	3.93	111.13	23	$96.14	$2,445.59
CHL	China Mobile Limi	10.63	4.13	55.32	40	$89.52	$2,169.60
MMM	3M Company Common	20.51	1.9	110.27	15	$38.10	$2,002.65
TUP	Tupperware Brands	19.13	2.43	80.98	15	$33.30	$1,370.10
IBM	International Bus	12.39	2.07	193.17	20	$74.00	$3,593.60
HAS	Hasbro Inc.	24.69	2.9	44.09	30	$46.80	$1,614.60
T	AT&T Inc.	25.92	5.08	34.47	30	$54.00	$1,056.30
WAG	Walgreen Co. Comm	23.13	1.99	44.25	30	$35.40	$1,776.00
AFL	AFLAC Incorporate	10.15	2.14	59.39	20	$28.40	$1,327.40
TGT	Target Corporatio	17.24	2.45	68.69	32	$50.56	$2,045.76
CSCO	Cisco Systems In	11.57	2.4	25.12	90	$45.90	$1,912.50
DE	Deere & Company C	9.22	2.37	84.11	15	$29.85	$1,263.60
RGR	Sturm Ruger & Co	14.6	2.76	51.65	20	$42.48	$1,538.60
LO	Lorillard Inc Co	16.2	4.27	42.3	30	$66.00	$1,539.90
UNP	Union Pacific Cor	17.95	1.82	154.75	8	$23.68	$1,296.32
IDA	IDACORP Inc. Com	15.38	3.06	47.94	20	$31.40	$1,033.60
BAX	Baxter Internatio	17.28	2.76	66.38	20	$37.60	$1,369.00
MSFT	Microsoft Corpora	14.08	2.58	33.88	40	$38.80	$1,525.20
ACN	Accenture plc. Cl	15.73	2.24	77.71	20	$34.80	$1,549.40
BCE	BCE Inc. Common	14.49	3.9	44.26	25	$42.98	$1,104.75
VZ	Verizon Communica	65.01	4.16	50.31	30	$62.25	$1,488.60
CVX	Chevron Corporati	10.01	3.19	124.03	10	$39.00	$1,224.40
ORCL	Oracle Corporatio	15.17	1.19	35.2	40	$16.80	$1,411.60
						$2,854.47	$93,433.67
						Average Yield	3.06%
						Yield On Cost	3.39%