Top 5 Quality Dividend Paying Companies: A Performance Assessment
In my previous article entitled Top Five Quality Dividend Paying Companies, I asked the questions:
Which companies survived relatively well in the last 3 years with good profit margins, reasonable levels of debt, ROA, ROE, and pay dividends? What volatility did these companies experience in their share price over the last 52 weeks? What sort of returns could I potentially gain holding these companies medium to long term?
We found Johnson & Johnson (JNJ), Coca-cola (KO), Southern Copper Corp. (SCCO), Altria Group (MO) and Abbot Labs (ABT) using the following screening criteria:
Mid to Large cap;
Dividend yield above 3%;
Profit margin above 10%;
ROA above 10%;
ROE above 20% and
Total Debt to Total Capital ratio below 50% (Total Capital = Total LT Debt + Shareholders Equity).
How did these companies fare seven months later? The S&P 500 moved from 1,113 (Jue 21, 2010) to 1,329 (February 11, 2011)... Read more