Over the last three months, the S&P 500 has fallen roughly 9.6%, yet some stocks have managed to buck the trend and move higher. We wanted to analyze these stocks by running DuPont analysis on their sources of profitability, as measured by return on equity. Analyzing the sources of returns for a company, we can focus on companies with the following characteristics:
Increasing ROE along with, Decreasing leverage, i.e. decreasing Asset/Equity ratio and Improving asset use efficiency (i.e. increasing Sales/Assets ratio) and improving net profit margin (i.e. increasing Net Income/Sales ratio). Companies passing all requirements are thus experiencing increasing profits due to operations and not to increased use of leverage.
Source: Seeking Alpha
Related Articles:
- There's Gold In Them Thar Dividend Stocks
- 6 Tech Stocks With A History of Growing Their Dividends
- Buy And Hold Is Not Buy And Forget
- 6 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- 9 Dividend Stocks With A Low P/B Ratio
Outperforming Dividend Stocks
Posted by D4L | Tuesday, October 25, 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...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.