dividends now the flavour, page-2

ohh, and the health of the company and its ability to continue to pay dividends hinges on return on equity. Some sums for you:

Net income is the profit of a company for the reporting period which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most watched numbers by money managers as well as individual investors.

BC Iron Net Income = 52.84 M

Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
BC Iron

Return on Equity = Net Income / Total Equity X 100 = 43.12 %

NB: BHP ROE is 37% and RIO is 27%

For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Return On Equity Comparison:
BC Iron is number one stock in return on equity category among related companies (MGX, GBG, CXM & NFE)