Growth is important for many investment strategies. More important is that the firm has a profitable growth.
Today I like to come back to my high-yield session. I like to screen companies with a positive return on assets and growing earnings.
The market cap of each company should be bigger than 2 billion. That's in my view enough to keep the big risks of smaller capitalized stocks away.
In addition, the debt-to-equity ratio should be under one.
Only seventeen stocks fulfilled the above mentioned criteria of which financials and basic materials are dominating the screen.
Here are my favorites of the results...
There is one thing that has become desperately clear to most everybody on Wall Street, rates are going nowhere any time soon, and possibly not until next year if any bad economic numbers start hitting the tape.
With 30% of all sovereign debt around the world with negative yields, and the rest just barely over the breakeven level, many people are looking far and wide for any sort of reasonable yield.
We screened the market for stocks that were rated with a strong buy and had a yield of more than 5%, and we found four that make good sense for investors with a touch more risk tolerance.
Only 20 stocks with a higher capitalization are available for high income investors. Most of the results come from the basic material sector.
Here are the results...
Experts on retirement living talk about the 4% rule, which means, either earn 4% a year to avoid eating into savings or don't spend more than 4% when interest and savings combined are calculated.
Either way, that is a tall order, considering the level of interest rates.
Think about how one's lifestyle would be improved with a 6% yield on the dividend portfolio.
However, reaching for yield is risky, so consider this, instead: A dividend-paying stock with a yield of 3% that is growing 15% annually will double an investor's monthly income in 4.8 years.
High-quality dividend stocks that offer investors this combination of yield and growth tend to enjoy a decent amount of appreciation to their stock prices.
And their dividend safety scores show a surprisingly low level of risk.
Each of the seven stocks below yields at least 3% and has increased its dividend by at least 15% a year over the past five years.
Let's take a closer look at them here...
Long-term investing is important for people who want a higher possibility of big returns. It's clear that you will not make 40% in a day with a solid large cap company.
You need time to get returns but you also need to be careful in terms of the price you pay for your investment. Only at cheap stock prices, you will make a high total return in the years to come.
I recently ran a stock screen to uncover income investments that fit the following criteria:
- Comfortably profitable
- Larger than $1 billion in market value
- Trading for a price-to-earnings ratio of less than 7.5x next year’s earnings
- A dividend yield of more than 3%
A number of companies popped up, including some volatile picks or overseas companies that only pay dividends once or twice a year.
These are the results...
Social Security pays retirement income every month, and so do many company benefit plans. Why not dividends?
Credit card bills and housing and insurance costs are due every month, and financial professionals agree that managing cash flow is a big challenge.
For sure, only because a company pays a monthly dividend is not the most important reason. More important are cash flows, growth persectices, price ratios and other fundamentals.
Today I like to introduce 7 top stocks that pay dividends each month and each of them offer a solid ground for further research.
These are the results...
