8 Dividend Stocks Bubbling Cash Like Lava

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Sep 12, 2014

If you like to make money on the stock market like me, you need a clear vision and strategy about how to make money.

Are you an income investor who likes to receive dividends or are you a short-term oriented trader with focus on quick profits?

I'm focused on long-term growth with growing income. In my view, only over a long period of time, can stocks double and develop their full asset potential.

I've recently published a small article about stocks with high free cash flows, companies that earn so much money from their operations and they have no need or desire to invest this money.

I love those companies, but the source of income should also be reliable. Only cash that comes over years and decades will deliver a good return for you.

In my first article about Cash Cows that produce money like milk, I've compiled some of the top yielding stocks with low reinvestment rates.

Most of the top yielding stocks come from the technology sector and they also plan to buy back a significant amount of their own shares which is also very good for the stock price.

Today I like to go forward and introduce the rest of my research results. They have on average a smaller yield but should be also attractive. A big part of the results come from the financial sector. Asset managers and stock exchange operators are top.

#1 Intercontinental Exchange (NYSE:ICE) has a market capitalization of $21.18 billion. The company employs 4,232 people, generates revenue of $1,674.00 million and has a net income of $270.00 million. Intercontinental Exchange's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,162.00 million. The EBITDA margin is 69.41 percent (the operating margin is 47.19 percent and the net profit margin 16.13 percent).

Financial Analysis: The total debt represents 7.80 percent of Intercontinental Exchange's assets and the total debt in relation to the equity amounts to 40.20 percent. Due to the financial situation, a return on equity of 3.13 percent was realized by Intercontinental Exchange. Twelve trailing months earnings per share reached a value of $4.17. Last fiscal year, Intercontinental Exchange paid $0.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 44.73, the P/S ratio is 12.65 and the P/B ratio is finally 1.71. The dividend yield amounts to 1.39 percent and the beta ratio has a value of 0.86. - See #2 -#8 here: These 8 Dividend Stocks Bubbling Cash Like Lava Gold Mines (Part II)