6 Dividend Stocks With High Profit Margins

It's not too surprising that some of the highest profit margin businesses out there are some of the most well-known. When a business can maintain a high profit margin, it often implies that it has a significant competitive advantage over its competitors. If this wasn't the case, then competitors would have chipped into those margins. But it's not quite as fair as that, because some industries simply offer profit margins that are far higher than other industries. Established companies in the healthcare or technology sectors almost always have higher margins than retailers and food producers, for instance. It's more meaningful to take into account both the absolute profit margin and the profit margin relative to its peers. It's also extremely useful to look at return on equity to see how efficiently and powerfully the company is compounding its money in relation to its amount of leverage. One of the most... Read more