Using return on assets (ROA) as a measure of profitability, the top quartile of companies in the S&P 500 have generated an average 5 year annualized return of nearly 20%, more than double that of the companies in the 4th quartile by ROA.
|Name||Yield||DPS Growth 2018||Net Debt to EBITDA||Dividend Coverage Ratio|
Source: Bloomberg Finance L.P., data as of 03/31/2021. Past performance does not guarantee future results. The referenced index is shown for general market comparisons and is not meant to represent the O’Shares Funds. Investors cannot directly invest in an index.
1st Quartile: Contains the top 25% of companies in the S&P 500 based on average 5-year return on assets.
2nd Quartile: Contains the top 25%-50% of companies in the S&P 500 based on average 5-year return on assets.
3rd Quartile: Contains the top 50%-75% of companies in the S&P 500 based on average 5-year return on assets.
4th Quartile: Contains the bottom 25% of companies in the S&P 500 based on average 5-year return on assets.
ROA (Return on Assets): Indicator of how profitable a company is relative to its total assets, in percentage. Calculated as (Trailing 12M Net Income / Average Total Assets) x 100. Higher ROA: Defined as companies with ROA that is above the average for the sector. Lower ROA: Defined as companies with ROA that is below the average for the sector.
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