10 Dividend Stocks With Enormous Profitability And Cash On Hand
The Net Margin (TTM) is a profitability ratio that reviews a firm's bottom line over the last twelve months. This metric illustrates how much of a profit is earned from each dollar generated. Generally a firm that can expand its Net Margin over time will have its share price increase due to increased profitability.
The Current Ratio is a liquidity ratio that illustrates a firm's ability to pay short-term obligations. The higher this ratio is the more easily a firm should be able to pay off all its short-term obligations should they all come due at once. A firm with a liquidity ratio of less than 1 is a red liquidity flag. As well, if a firm has poor inventory turnover or receivables, this could affect the quality of its current ratio.
We first screened for dividend stocks that have strong profitability relative to the bottom line (Net Margin TTM>10%). From this narrowed pool we screened for firms with a strong liquidity (Current Ratio>1). We did not screen out any companies by market capitalization.
The firms are listed highest to lowest according to the dividend yield:
1. Giant Interactive Group, Inc. (GA)
The company develops and operates online games in China. The firm has a Net Margin (TTM) of 62.03%. GA's Current Ratio is 7.20. The company's dividend yield is 81.69%. The short interest was N/A as of 09/30/2011. Given GA's extraordinarily high dividend yield, this deserves extra attention when reviewing the firm in greater detail.
2. Capital Product Partners L.P. (CPLP)
The company operates a fleet of product tankers and charters them out. The firm has Net Margins (TTM) of 20.50%. CPLP's Current Ratio is 3.10. The company's dividend yield is 14.93%. The short interest was 6.30% as of 09/30/2011.... Read more