While some investors are ready to pull out there hair due to the antics of the market others are leaning back in their seats with a big smile. That’s because the latter investors have put their capital and faith in firms that are not only paying them dividends to take on market risk but also performing well in a choppy economy by maximizing their asset base. This may sound too simple for some but there is a reason the old adage “keep it simple” is still being used in today’s complex world and the proof is in the pudding.
Return on Assets (ROA) is a profitability ratio that lets investors know exactly how much earnings are being generated solely off of a firm’s asset base. In addition, it helps investors judge management’s effectiveness relative to maximizing a firm’s assets. Remember, any management team can make some level of return by throwing money at a situation but only a few can make large returns on small investments.
Source: Seeking Alpha
Related Articles:
- Buy-And-Hold Under Attack
- A Two Step Process To Follow After A Dividend Freeze
- Who is Irving Kahn and Why Should We Listen to Him?
- International Income Investing
- Nucor Corp. (NUE): Forging A Different Path
Dividend Stocks With Strong Return On Assets
Posted by D4L | Sunday, October 30, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.