15 Dividend Growth Stocks With Over 20% Return on Equity and Return on Investment
Dividend growth stocks with very high returns on equity and returns on investment originally published at long-term-investments.blogspot.com. A solid investment delivers also solid returns over the time. Dividend growth is not the only criteria for a good investment. There are also many dividend growth stocks outside with low or negative return on investments and return on equity ratios.
Today I screened the Dividend Contenders Database by stocks with high return ratios. I fixed the 20 percent level in order to get the best results.
Only 15 companies fulfilled both, a return on equity as well as a return on investment over 20 percent. The difference between those two ratios is that the return on investment does not include the leverage effect. A corporate with high debts will automatically generate high returns on equity. The second ratio is a performance measure that looks only at the investment by dividing the investment return by the costs of the investment.
One High-Yield is below the results and 10 stocks got a buy or better rating by brokerage firms. Leverage is the key for high returns in my screen. As you might see in the attached sheet, the debt ratios are modestly high but in the end, the investor will pay a higher price for a leveraged company.
Here is the full table with some fundamentals:
15 Long-Term-Dividend Growers With More Than 20% ROE and Return on Investment...
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ARLP, LMT, ERIE, MSFT, LLTC, IBM, RHI, ROL, PII, NVO, NUS, FDS, TJX, ROST, JBHT
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