This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Fortunately, it looks like Alibaba has a clear plan to unlock shareholder value. Delivering almost zero value to shareholders Alibaba was at its peak when it came public in 2014. But unlike 2014, when investors were optimistic about Alibaba's prospects, investors today are incredibly pessimistic.
Airlines aren't productive (at least for shareholders) The ultimate test of whether a company is allocating capital productively for shareholders is the comparison between its return on invested capita l (ROIC) and its weighted average cost of capital (WACC). Here's the lowdown on a fascinating industry.
This benefits shareholders directly because management allocates these excess earnings toward dividend payments. Its revenue grew by 28% between 2014 and 2024. Additionally, Ford must invest heavily in research and development and manufacturing capabilities just to maintain its current competitive position. billion in dividends.
In fact, dividends have accounted for a whopping two-thirds of the market's total returns since 1900. Among dividend stocks, those that consistently raise their payouts to shareholders have also proven to be superior performers, relative to most other asset classes, over the long term. Image source: Getty Images.
With a 34% return on invested capital (ROIC) , Home Depot generates outsize profitability compared to its debt and equity. HD Return on Invested Capital data by YCharts Historically, high-and-rising ROICs such as this have led to outperforming stocks. But the shareholderreturns don't stop here.
Lower interest rates lower the cost of capital and can increase the return on investment for capital-intensive projects. Room for further balance-sheet improvements Since the oil and gas downturn of 2014 and 2015, Kinder Morgan has worked hard to restore its balance sheet and rebuild investor confidence in its dividend.
What makes these expansion plans look so promising for investors is that O'Reilly's return on invested capital (ROIC) of 67% is one of the highest on the market. The company has consistently lowered its share count by nearly 6% annually over the last decade, making it one of the most shareholder-friendly businesses.
New York Community Bank, if you're not familiar, the stock has pretty much flatlined for the past 10 years until this recent decline from about 2000-2014, they were a 40-bagger. It was arguably from 2014-2019, the best growth environment for banking in the past 30, 40 years. Happy to be a shareholder of?
Averaging a top-tier cash return on invested capital (ROIC) of 34% over the last decade, Rollins is one of the best compounders on the market, as evidenced by it being a 113-bagger since 2000. As this article points out , stocks with higher ROICs typically tend to outperform.
Exceptional profitability Best yet for investors, the company's high and rising return on invested capital (ROIC) makes these expansion plans even more promising. SFM Return on Invested Capital data by YCharts ROIC measures a company's ability to generate net income from its debt and equity.
Currently generating a return on invested capital (ROIC) of 15% versus a weighted-average cost of capital (WACC) of 10%, the company is creating value for shareholders, generating outsize profits compared to its debt and equity.
Actively consolidating its fragmented industry, Rollins has delivered a cash return on invested capital (ROIC) of 33%, highlighting how incredibly well it drives FCF creation via its many acquisitions. dividend yield is its highest since 2014, indicating that now may be a great time to dollar-cost average (DCA) into this steady-Eddie.
We returned a record of more than $3 billion to shareholders in cash dividends. And now, we have paid approximately $45 billion to shareholders in dividends over our history as a public company. Catalyst shareholders include Simon, Brookfield, Authentic Brands Group and Shein. We generated $4.6 year over year.
Over time, we expect this to drive greater returns on invested capital in both our mobility and broadband businesses that either would be expected to achieve as stand-alone operations. This should provide us with greater financial flexibility to support sustained investment in growth as well as enhanced shareholderreturns.
So, they were granted in 2014, and I plan to exercise and hold while selling just enough to pay the cost of exercising and the taxes. Everett's done a really nice job of leading this team, but we see such strong return on investment there that we are going to raise some investment there. Your line is open.
I checked the date, June 25th, 2014. They have generated great return on invested capital and great return on equity for many, many years. Yasser El-Shimy: Well, the longtime shareholder of both Amazon.com and Shopify. Yasser, you've been a shareholder. So nine years later, a four-bagger.
Growing to become the leader of this unique niche across North America, Cintas turned a $1,000 investment in 1989 into $1.1 million today for its shareholders. CTAS Cash from Operations (TTM) data by YCharts Since 2014, Cintas' cash from operations nearly quadrupled, while capital expenditures only doubled.
Down 35% from its all-time high, the company trades at 18 times cash from operations (CFO) and has a dividend yield of 3.3%, both of which are near their most attractive levels since 2014. Both of these marks are near their most favorable levels since 2014. But don't just take my word on these valuation metrics being appealing.
The company has been growing faster than the overall animal healthcare industry every year since 2014 thanks to its penchant for continuous innovation. At the same time, however, the company has also reduced its total shares outstanding by 1% annually since 2014, creating my favorite "X factor" chart.
This has resulted in revenue growth of nearly 200% between 2014 and 2024. Every additional transaction that runs through the protocol carries a high return on invested capital. I'd argue that Mastercard's competitive position is virtually unassailable despite the top fear many shareholders might have of ongoing regulatory risks.
In the last 10 years, between Q3 2014 and Q3 2024 (ended Sept. I'll also call out Ford's return on invested capital (ROIC) of 1.8%. The potential for disappointing shareholdersreturns, supported by weak growth prospects and subpar profitability metrics, means that Ford stock isn't a smart investment to make right now.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content