3 Profitable High Yield Dividend Stocks Reporting Earnings Next Week
Q4 earnings season has begun, do you have a watch list prepared?
For a starting point, we ran a screen on next week’s reporting companies for those with high dividend yields and high profitability, beating their industry peers on trailing twelve month (TTM) gross, operating, and pretax margins.
To analyze profitability, we compared the companies’ gross, operating, and profit margins with their industry averages to find those more profitable than their industry peers.
TTM Gross margin: This metric that tells us the percentage of a company’s revenue is left after paying all production expenses. Costs include overhead, payroll and taxation. ((revenues – cost of goods sold) / Revenue ) *100 = Gross margin %
TTM Operating margin: This tells us the percentage remaining after all operating expenses are paid. Operating expenses include: supplies, repairs, research and development, and depreciation. (Operating Income / Net Operating Revenue) *100 = Operating Margin %
TTM Pretax margin: A company’s earnings before taxes. This incorporates all of the expenses associated with business excluding taxes. It can help to determine the overall operating efficiency of the firm. The higher the pretax margin, the more profitable the company. (Net profit before taxes / net sales) *100 = Pretax Margin
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The following list of stocks meet all of these criteria:
- Dividend yield between 3-7% (high yield)
- More profitable than their industry average
- Market cap over $50 million
- Share price above $1
- Reporting earnings next week
How do you think these stocks will fare next week in their earnings announcements?