7 Low Debt Dividend Stocks With Encouraging Dupont Breakdowns

Do you prefer stocks that offer both dividend income and the real possibility of capital gains? You might be interested in our list below: We began by screening for low-debt dividend stocks: those paying dividend yields above 1%, with sustainable payout ratios below 50%, and debt-to-equity ratios below 0.1. Profitability is a very important consideration when choosing among dividend stocks. If you want to be able to rely on a company's dividend, be sure that the company's profits are also reliable. With this in mind we then analyzed sources of profitability using the DuPont formula. The DuPont formula uses return on equity (ROE) for its profitability measurement. The higher the ROE the more profitable the company appears, but this profitability can come from many sources - some better than others. In general, an encouraging DuPont breakdown implies one or more of the following: -Improving Net Profit Margin, i.e. higher Net... Read more