Dividend Stocks with Strong Sources of Profitability

Looking for stocks paying reliable dividends? One way to check a company’s ability to pay a dividend is by evaluating their sources of liquidity, which include cash and accounts receivable. If you want to rely on a company’s dividend for the long haul, here are some ideas on how to analyze dividend stocks. Dividends are a payment made by a company to its shareholders. The money is a portion of the company’s earnings, which is represented by the payout ratio. Not all companies pay dividends. Management determines if and when dividends are paid, and how much each shareholder is paid.

Cash dividends are paid as a percent of the share value. For example: Company XYZ shares are valued at $100 and pays a 5% dividend. You receive $5 per share. If you own 200 shares of Company XYZ, you can expect to receive $1,000. We started this screen with dividend stocks paying over 1% dividend yields, payout ratios under 50%, and current ratios over 3. Then we compared those stocks to their DuPont breakdown. Those results are listed below:
1. Hillenbrand, Inc. (HI)
2. Foot Locker, Inc. (FL)
3. Columbia Sportswear Company (COLM)
4. Tiffany & Co. (TIF)
5. Cascade Corp. (CASC)

Source: Kapitall

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