For investors wanting to have their cake and eat it too, we have some great stocks to consider. All of these stocks carry the S&P Quality Rating of A, A+ or A-. Then, they all pay dividends and have a projected EPS growth of 15% or more for next year. So what you are getting is a fundamentally strong company that pays dividends and produce great earnings for potential price appreciation in the next year. All of these stocks are up at least 10% year to date easily beating the S&P 500. Here is the list of high quality stocks with high earnings growth.
Computer Programs and Systems, Inc., (CPSI) a healthcare information technology company, designs, develops, markets, installs, and supports computerized information technology systems to small and midsize hospitals in the United States. Total revenues for the first quarter ended March 31, 2012, increased 10.2% to $44.5 million, compared with total revenues of $40.4 million for the prior-year quarter. Net income for the quarter ended March 31, 2012, increased 5.1% to $5.6 million, or $0.51 per diluted share, compared with $5.4 million, or $0.49 per diluted share, for the quarter ended March 31, 2011. CPSI is projected to increase earnings 19.2% next year. CPSI has a dividend yield of 3.22% which was increased 28% in the past year. CPSI has no debt and trades with a beta of 0.87. CPSI has an equity summary score of 7.5 out of 10 for a Bullish outlook.
The Toro Company (TTC) designs, manufactures, and markets professional turf maintenance equipment and services worldwide. The company reported Q2 earnings of $2.26 per share, versus the Capital IQ consensus of $2.14. Revenues were $691.5 million, versus the analyst estimate of $676.4 million. For FY12, the company expects EPS of approximately $4.30, in the lower end of its previously announced guidance range of $4.30 – $4.35. This compares with the analyst estimate of$4.29. The company also expects revenue growth of 7% – 8% year-over-year. TTC is projected to increase earnings 15.9% next year. TTC has a dividend yield of 1.77% which was increased 10% in the past year. On May 24, 2012 the board of directors at Toro Co approved a 4 for 2 stock split. New shares will be granted on June 29, 2012 to shareholders of record on June 15, 2012. Beginning on July 2, 2012, the security’s price will reflect the split adjusted price. TTC has an equity summary score of 8.4 out of 10 for a Bullish outlook.
Technology giant Microsoft (MSFT) just announced a new tablet device to compete in the portable computing market and the future release of Microsoft Phone 8. MSFT posts $0.60 Q3 EPS versus Capital IQ consensus forecast of $0.58. MSFT had solid results driven by outperformance in Windows, Server & Tools, and Microsoft Business Division, as PC demand has started to recover, continued adoption of Office 2010, SharePoint, and strong growth in SQL Server. MSFT revised operating expense guidance downward, now sees $28.3B-$28.7B for FY 12. MSFT is projected to increase earnings 15.2% next year. MSFT has a dividend yield of 2.61% which was increased 25% in the past year. MSFT has an equity summary score of 9.0 out of 10 for a VERY Bullish outlook.