Growth is wonderful but only makes sense when the company has a high return on assets.
It's a massive money creating strategy to take cash and upscale a high returning business.
Today I've discovered some growth stock ideas with double digit returns on assets and operating margins with low price and debt ratios.
These are my criteria in detail:
- Large Cap
- Positive Dividend Yield
- Debt to Equity under 1
- Expected 5-Year EPS Growth over 5 percent
- Past 5-Year Sales Growth over 5 percent
- Forward P/E under 15
- 10 Percent ROA and Operating Margin
There were exactly 16 stocks that met my tight criteria. I'm also impressed by the sector diversification. A broad range of stocks from completely different industries stopped with these restrictions but technology stocks still dominating my results.
Technology is not the same. There are old-techs and new-tech companies. The first category delivers "commodities" for the following, new companies. Oracle, Microsoft and AT&T are such investments.
Below are my five favorites from the results; you can also find a table with the full results attached. I hope you enjoy my work and get more stock trading ideas. My focus is dividend, value and growth driven.
5 Top Dividend Paying Growth Stocks with Big Return on Assets are...
#1 CNOOC (NYSE:CEO) has a market capitalization of $70.13 billion. The company employs 17,553 people, generates revenue of $46.766 billion and has a net income of $9.237 billion.
CNOOC's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.183 billion. The EBITDA margin is 47.43 percent (the operating margin is 27.46 percent and the net profit margin 19.75 percent).
Financials: The total debt represents 21.22 percent of CNOOC's assets and the total debt in relation to the equity amounts to 38.60 percent. Due to the financial situation, a return on equity of 17.34 percent was realized by CNOOC.
Twelve trailing months earnings per share reached a value of $20.35. Last fiscal year, CNOOC paid $9.33 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.68, the P/S ratio is 1.50 and the P/B ratio is finally 1.25. The dividend yield amounts to 4.70 percent and the beta ratio has a value of 1.26. Read more about #2 - #16 here: 16 Incredible Stocks Converting Growth In Pure Return...
