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16 Most Profitable Dividend Champions By Net Profit Margin

By definition, profitability ratios measure a company's ability to generate profit for the owners. There are dozens of profitability ratios that could be used, each measuring a company's profit against a desired benchmark such as sales, assets, or equity.

However, the key to a profitability ratio isn't the number itself, but how that number compares in relation with a company's peers or its own history.

Investing is really about one thing and one thing only: the ability to participate alongside the profit generating ability of a business.

You may also like: 5 Profitably Growing Dividend Stocks.

With profits at the very foundation of investing, it means that investors need to have a firm grasp on the ability of a company they're investing in to turn a profit. The best way to gauge how well a company is doing in that regard is to take a closer look at its profitability ratios to see how that company really stacks up. There are three profitability ratios in particular that every investor really should know.

While there are a number of profitability ratios that measure a company's ability to generate profit from the sales or services it provides, one of the most important is the net profit margin. It tells us what percentage of revenue a company keeps after all its bills are paid. The formula is: Net Margin = (Net Income or Loss) / Sales.

Recently, I've published an article about stocks with high Margins. My guess is that they have a real competitive advantage by realizing such high margins. Under the results were many non-dividend paying companies or stocks that have recently started to pay dividends like Apple and Blackrock.

Attached, you can find a list of stocks with the highest net profit margin below the Dividend Champions League. Those stocks have raised Dividends by more than 25 consecutive years.

In total, 16 stocks matched my criteria of net profit margins above 20%.

Here are the most profitable dividend growth stocks, by yield...

This Well Diversified Global Industrial Stock Portfolio Generated 9.84% Yearly

There is only a small way to make money with dividend paying stocks. If we look at the past performances, we can easily discover those stocks that generated a long-term return for investors.

Industrials were some of them. You made not tons of money but a solid return for your retirement portfolio. The great disadvantage for industrials is that they are more cyclic. They measure the economic activity and health of the global economy.

However, a portfolio of the top industrials generated an annual return of 9.84% during the past decade. Attached you can find 11 members of the global diversified industrial portfolio that pay solid dividends.

Those are some of the best picks from the industrial sector you can find.

These are the results...

Ex-Dividend Dogs For The Next Week And Dividend Growers Of The Past Week

Below is an overview of the Ex-Dividend Dogs for the next week. Those stocks go ex-dividend and have a low forward P/E of less than 15.

10 companies are on the list of the cheapest Ex-Dividend stocks while 73 go ex-dividend. A full stock list of dividend stocks (common shares, preferred shares and American Depositary Receipts – ADR’s), paying forthcoming dividends and having their ex-dividend within the week October 12, 2015 – October 18, 2015 can be found linked. The average dividend-yield amounts to 5.18 percent.

SJR, ABBV, THO and AET are my personal favorites. Which stocks do you like from the list?

Ex-Dividend Dogs of the next week...

Ex-Dividend Dogs For The Next Week (click to enlarge)

Dividend Growth Stocks of the past week...

Below, you can find the latest dividend growth stocks of the past week. Ony 15 companies raised their dividend output.

Goodyear, Plains All American Pipeline, RPM, YumBrands are the most establised names.

15 Dividend Growth Stocks Of The Past Week - October 05 - 11, 2015

6 High-Yielding Stocks With Monthly Dividend Payments

We all have bills to pay every month and need fresh money each month, year for year. 

There’s just one problem with normal investing: If you’re living off of your investments, you normally get paid on a very different timeframe. Often your dividends come yearly or quarterly and bond interest is usually paid semi-annually.

Even if you have a diversified portfolio of bonds and dividend stocks, this schedule is going to make your monthly cash flows lumpy. I don’t know about you, but I don’t like trying to plan my expenses three to six months in advance. 

For a retiree, I can’t think of too many things scarier than running out of money in between quarterly dividend payments. Well, fear not. There is a solution: Monthly dividend stocks.

Monthly paying stocks are not better than quarterly payers. There is a huge limitation in terms of quality stocks but if you have a strong focus on companies with monthly payments, you should look at the following selection of high yieldingstocks.

Here are the results...

30 High-Margin Stocks With Strong Competitive Advantages

Investing into high margin companies could end in a better return. The underlying thought is simple: A companies that works on higher margin can survive a market correction more likely and become stronger after a recession.

Attached, you can find a list of companies with high profit margins. Those could be a first step to start a further research. 

In general, the margin tells us something about the competition as well as the business model. 

High margins mean that the corporate make many business processing steps by it. The competition is less hard. Products are unique and could have a market barrier.

Here is the selection of high-margin stocks...