I found this list to be very informative. Look at the Dividend Yields & Net Profit Margin
http://biz.yahoo.com/p/sum_qpmd.html
Dividend is significantly less than Net profit margin.
BHC - What do you think this indicates?
Dan
Dividend is significantly less than Net profit margin.
BHC - What do you think this indicates?
Two different values are used to derive the percentages.
Net Profit margin = Net Profit / Net Revenue
Dividend Yield = Dividend per share / Price per share (basically the return on the value of your investment)
The ROE% (return on equity) is also significant. Net Income / Owners Equity
I understand the calculations, but what do you think this means?
Not trying to be a pain, just wondering what you think the significance of the numbers are.
Dan
Keep in mind that I have a Masters In Economics, so I eat this shit up like junk food. It just shows who is really making the $$$$ and who is not. (keeping in mind that this is just a snapshot).
Example: Cigarettes ROE-66.20% The highest of all groups.
I understand the calculations, but what do you think this means?
Not trying to be a pain, just wondering what you think the significance of the numbers are.
Dan
Divvies may be held back to accrue cash, to provide for investments going forward or any raft of reasons, vitrtually all of which make biz sense.
A royalty trust must pay out significantly more in divvies…up to 85% I think.
Keep in mind that I have a Masters In Economics, so I eat this shit up like junk food. It just shows who is really making the $$$$ and who is not. (keeping in mind that this is just a snapshot).
This is good! You understand it, obviously, so you can help me. 
Your original note of dividend yield and net profit - what were you driving at?
The cig example may be explained by a number of things. Given that the P/E is not outstanding, and the P/B is in the toilet, I’d guess (and it’s only a guess, given the 10,000’ view of this) that the industry doesn’t have many assets (or has a lot of liabilities on the books), and that they are paying decent dividends.
Your thoughts?
Dan
Divvies may be held back to accrue cash, to provide for investments going forward or any raft of reasons, vitrtually all of which make biz sense.
Bingo - that’s one reason!
The other piece is that Net Profits are not always available to pay out as dividends. This is an accounting thing that rarely translates Net Profit directly to available cash in a business. Depreciation expenses, disallowed expenses (by the IRS practice), cash purchase of assets (section 179, for example), and other accounting rules skew Net Profit higher (in my experience) than you ever have on a cash basis.
Guess what - Corporations get taxed on Net Profit, not available cash (from which they pay dividends). Is it any wonder that IRS rules favor the inflation of Net Profit?
Dan