Dividends4Life: Dividend Stocks With Positive Receivable Trends

Dividends are a payment made by a company to its shareholders. The money is a portion of the company’s earnings, which is represented by the payout ratio. Not all companies pay dividends. Management determines if and when dividends are paid, and how much each shareholder is paid.Cash dividends are paid as a percent of the share value. For example: Company XYZ shares are valued at $100 and pays a 5% dividend. You receive $5 per share. If you own 200 shares of Company XYZ, you can expect to receive $1,000. This all said, if the company made $50 per share, the payout ratio would be 10%.

This represents money earned but not yet collected and there is no guarantee that the money will be paid back in full. So when receivables becomes a smaller part of the revenue reported by a company, it indicates higher quality revenues. We started this screen with technology companies that are paying dividends over 1%, with a positive payout ratio under 50%. Then we checked their accounts receivable for positive trends. The remaining stocks are listed below: 1. Broadridge Financial Solutions Inc. (BR), 2. Tyco Electronics, Ltd. (TEL), 3. Jack Henry & Associates Inc. (JKHY), 4. Jabil Circuit Inc. (JBL), 5. FactSet Research Systems Inc. (FDS) and 6. Raven Industries Inc. (RAVN).

Source: Kapitall

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