Dividends4Life: Highly Profitable Cash Rich Dividend Stocks

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Highly Profitable Cash Rich Dividend Stocks

Posted by D4L | Wednesday, January 02, 2013 | | 0 comments »

We had high standards in mind while creating the list below. At the forefront of the process was a strong and protected dividend yield. It was decided we would screen for dividend stocks with exceptional profit margins and the extra cash on hand to continue payments come hell or high water. First, we looked for highly profitable companies. We measure this as stronger trailing twelve month (TTM) operating, gross and pretax margins than the average of their industry peers.

Secondly, we looked at cash and short term investments on hand relative to the company’s quarterly operating expenses, as averaged over 5 quarters. We took only the companies with cash holdings that exceed 4 times the average quarterly operating expense. In other words, all of these companies could function for more than four quarters without generating any revenue. 5 stocks made the list: Calamos Asset Management Inc. (CLMS), Analog Devices Inc. (ADI), Xilinx Inc. (XLNX), Altera Corp. (ALTR) and Mastercard Incorporated (MA).

Source: The Street

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