Investors can't control situations such as Europe but they can redirect their energy toward identifying and evaluating potential opportunities such as dividend stocks with strong profitability and bullish momentum.
The twelve month trailing Return on Equity (ROE) metric is a snapshot that lets investors know how much shareholder value is being added. The ratio turns net income as a percentage of shareholder equity and provides a rate of return. This key profitability ratio should always be reviewed in detail because it illustrates how much of a profit has been generated through the company’s equity alone in the past twelve trailing months.
We first looked for dividend stocks that have illustrated strong consisten profitability (ROE (TTM)>30%). From this narrowed list we then looked for companys that have taken on bullish momentum over the last 3 months. We did not screen out any sectors or market caps.
The list is ranked from highest to lowest by 3 month market performance:
1. Spreadtrum Communications, Inc. (SPRD)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $1,134M |
Beta | 1.25 |
The company designs and sells baseband processor solutions for the wireless communications space. The company’s dividend is 0.34%. SPRD’s ROE (TTM) is 56.67%. The company's stock has increased over the last 3 months by 65.43%. The short interest was N/A as of 09/30/2011.
2. Xyratex, Ltd. (XRTX)
Sector | Technology |
Industry | Data Storage |
Market Cap | $370M |
Beta | 1.95 |
The company offers storage process technology and modular enterprise-class data storage solutions. The company’s dividend is 0.38%. XRTX’s ROE (TTM) is 12.1%. The stock has increased over the last 3 months by 31.53%. The short interest was 8.60% as of 09/30/2011.
3. Giant Interactive Group, Inc. (GA)
Sector | Industrials |
Industry | Business Services |
Market Cap | $932M |
Beta | 0.61 |
The company develops and operates online games in China. The company’s dividend yield is 73.83%. GA’s ROE (TTM) is 14.25%. The stock has increased over the last 3 months by 26.48%. The short interest was N/A as of 09/30/2011.
4. Goodrich Corporation (GR)
Sector | Industrials |
Industry | Aerospace & Defense |
Market Cap | $15,258M |
Beta | 0.77 |
The company supplies systems, components, and services to the aviation market. The company’s dividend yield is 0.95%. GR’s ROE (TTM) is 20.05%. The stock has increased over the last 3 months by 24.48%. The short interest was N/A as of 09/30/2011.
5. El Paso Corporation (EP)
Sector | Energy |
Industry | Oil & Gas Integrated |
Market Cap | $19,680M |
Beta | 1.22 |
The company operates in the regulated natural gas exploration, transmission, and production sectors. The company’s dividend is 0.16%. EP’s ROE (TTM) is 13.5%. The stock has increased over the last 3 months by 23.84%. The short interest was 2.70% as of 09/30/2011. The company recently received a buyout offer from Kinder Morgan (KMI).
6. Randgold Resources, Ltd. (GOLD)
Sector | Basic Materials |
Industry | Gold |
Market Cap | $9,991M |
Beta | 0.46 |
The company is engaged in exploring for, mining, and producing gold. The company’s dividend is 0.16 %. GOLD’s ROE (TTM) is 11.23%. The stock has increased over the last 3 months by 20.74%. The short interest was N/A as of 09/30/2011.
7. Allegiant Travel Company, LLC. (ALGT)
Sector | Industrials |
Industry | Airlines |
Market Cap | $988M |
Beta | 0.49 |
The company is a leisure travel outfit. The company’s dividend is 1.45% ALGT.’s ROE (TTM) is 17.11%. The stock has increased over the last 3 months by 20.19%. The short interest was 25.30% as of 09/30/2011.
8. Nu Skin Enterprises, Inc. (NUS)
Sector | Consumer Defensive |
Industry | Household & Personal Products |
Market Cap | $2,963M |
Beta | 1.20 |
The company does direct sales for personal care and nutritional supplement products around thre world. The company’s dividend is 1.17%. NUS’s ROE (TTM) is 28.4%. The stock has increased over the last 3 months by 17.57%. The short interest was 10.90% as of 09/30/2011.
9. Ross Stores, Inc. (ROST)
Sector | Apparel Stores |
Industry | Consumer Cyclical |
Market Cap | $10,132M |
Beta | 0.75 |
The company operates two chains of off-price retail apparel and home accessories stores, which target value-conscious women and men between the ages of 18 and 54 primarily from middle income households. The company’s dividend is 0.94 %. ROST’s ROE (TTM) is 45.06 %. The stock has increased over the last 3 months by 14.59 %. The short interest was 3.00% as of 09/30/2011.
10. Sunoco Logistics Partners. (SXL)
Sector | Energy |
Industry | Oil & Gas Midstream |
Market Cap | $3,147M |
Beta | -0.02 |
The company owns and operates pipeline, terminalling, and crude oil assets. The company’s dividend is 5.01%. SXL’s ROE (TTM) is 35.69%. The stock has increased over the last 3 months by 14.46%. The short interest was 2.50% as of 09/30/2011.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
