Dividends4Life: Dividend Stocks With Strong Return On Assets

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Dividend Stocks With Strong Return On Assets

Posted by D4L | Sunday, October 30, 2011 | | 0 comments »

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

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