On May 25, we added a patent powerhouse to the Best Dividend Stocks list. Now, 60 days later, Dividend.com Premium members that invested in this new addition have enjoyed its returns. It doesn’t end there, though. The expectation is that this patent powerhouse will continue to strive in today’s economy.
This company stood out in our DARS analysis. Excellent relative strength and a 9.9% estimated growth in earnings from 2016 to 2017 is right in the sweet spot as we prefer single digit growth estimates over double digit. It’s yield right now looks low at 1.9% because the stock has run off so much. The company has given 12 consecutive years of dividend increases and with a modest payout ratio of 46% based on 2016 earnings estimates it left plenty of room for the company to keep growing their dividends.
Stock Soars 7% in a Single Day
The share price rose more than 7% on July 26th due to following earnings announcement:
- The net profit rose to $0.76 per share, an increase of 17% versus the same quarter last year.
- Total revenue increased 1.3% year-over-year, to $3.27 billion.
- Both the top and bottom line exceeded analyst estimates, which called for $3.2 billion of revenue and $0.73 per share of earnings.
Not a One-Trick Pony
This patent powerhouse is not the only Best Dividend Stock that Premium members are cashing in on. We have 19 other stocks on the Best Dividend Stocks list and their returns so far have been nothing short of stunning.
- >11% return from 1 stock
- >5% return from 5 stocks
- >3% return from 7 stocks
- >2% from 5 stocks
- -0.5% from 1 stock
(These returns are as of the end of the trading day July 27, 2016. They exclude any dividend payouts that the companies have made.)