The Current Ratio is a liquidity metric that measures the ability of a firm to cover its short-term obligations with its current assets. The higher the ratio the more capable the firm should be in accomplishing this goal. A ratio under 1 is a red liquidity flag because it indicates that the firm cannot pay off all its obligations if they were to all come due at once. While this isn’t a good sign relative to financial health it doesn’t mean the firm will go bankrupt either.
The 1-Year Fiscal Net Profit Margin illustrates how much of each dollar earned is turned into profits. Firms that can continue to increase their Fiscal Net Profit Margin over time are generally rewarded with a higher stock price because of increased profitability.
We ran a screen for dividend stocks that have strong liquidity (Current Ratio>2). From this narrowed pool we then screened for firms with a 1-Year Fiscal Net Profit Margin of at least 10% or higher.
The 1-Year Fiscal Net Profit Margin ranks the firms from highest to lowest:
1. Spectra Energy Partners, LP (SEP)
Sector | Energy |
Industry | Oil & Gas Midstream |
Market Cap | $2,747M |
Beta | 0.12 |
The company transports and owns natural gas assets. The firm’s 1-Year Fiscal Net Profit Margin is 69.45%. SEP’s Current Ratio is 7.34. The dividend yield is 6.37%. The short interest was N/A as of 08/15/2011.
2. Silver Wheaton Corporation (SLW)
Sector | Basic Materials |
Industry | Silver |
Market Cap | $14,379M |
Beta | 1.60 |
The company operates through the sale silver. The firm’s 1-Year Fiscal Net Profit Margin is 68.52%. SWL’s Current Ratio is 4.21. The dividend yield is 0.15%. The short interest was N/A as of 08/15/2011.
3. Giant Interactive Group, Inc. (GA)
Sector | Industrials |
Industry | Business Services |
Market Cap | $1,822M |
Beta | 0.50 |
The company develops and distributes online games in China. The firm’s 1-Year Fiscal Net Profit Margin is 60.86%. GA’s Current Ratio is 7.20. The dividend yield is 37.75%. The short interest was N/A as of 08/15/2011.
4. Buenaventura Mining Company (BVN)
Sector | Basic Materials |
Industry | Gold |
Market Cap | $11,977M |
Beta | 0.70 |
The company mines and processes silver, gold, and other metals. The firm’s 1-Year Fiscal Net Profit Margin is 60.06%. BVN’s Current Ratio is 4.55. The dividend yield is 1.00%. The short interest was N/A as of 08/15/2011.
5. EV Energy Partner LP (EVEP)
Sector | EnergyEnergy |
Industry | Oil & Gas E&P |
Market Cap | $2,532M |
Beta | 1.03 |
The company develops and produces oil and gas properties. The firm’s 1-Year Fiscal Net Profit Margin is 54.87%. EVEP’s Current Ratio is 4.13. The dividend yield is 4.10%. The short interest was 1.10% as of 08/15/2011.
6. Corning Inc. (GLW)
Sector | Technology |
Industry | Electronic Components |
Market Cap | $22,561M |
Beta | 1.42 |
The company manufactures and sells specialty glass and ceramics. The firm’s 1-Year Fiscal Net Profit Margin is 53.65%. GLW’s Current Ratio is 4.48. The dividend yield is 1.39%. The short interest was 1.40% as of 08/15/2011.
7. Goldcorp, Inc. (GG)
Sector | Basic Materials |
Industry | Gold |
Market Cap | $45,112M |
Beta | 0.65 |
The company is engaged in the acquisition and development of precious metal mines. The firm’s 1-Year Fiscal Net Profit Margin is 41.43%. GG’s Current Ratio is 3.82. The dividend yield is 0.65%. The short interest was N/A as of 08/15/2011.
8. Knightsbridge Tankers, Ltd. (VLCCF)
Sector | Industrials |
Industry | Shipping & Ports |
Market Cap | $405M |
Beta | 1.04 |
The company operates a fleet of seaborne transportation ships that move crude oil. The firm’s 1-Year Fiscal Net Profit Margin is 40.21%. VLCCF’s Current Ratio is 5.60. The dividend yield is 12.07%. The short interest was 9.80% as of 08/15/2011.
9. Altera Corp. (ALTR)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $11,384M |
Beta | 1.07 |
The company designs and sells programmable logic devices. The firm’s 1-Year Fiscal Net Profit Margin is 40.06%. ALTR’s Current Ratio is 6.69. The dividend yield is 0.74%. The short interest was 3.50% as of 08/15/2011.
10. Linear Technology (LLTC)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $6,411M |
Beta | 0.98 |
The company develops and sells linear integrated circuits. The firm’s 1-Year Fiscal Net Profit Margin is 39.14%. TICKER’s Current Ratio is 7.24%. The dividend yield is 3.38%. The short interest was 6.70% as of 08/15/2011.
We hope this list helps as investors do their own due diligence on dividend stocks with strong Current Ratio’s and Net Profit Margins.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
