Return on invested capital, generally often called ROIC, is the ratio of the after-tax working revenue of an organization to the sum of its price of debt and fairness capital. ROIC is helpful when in comparison with the weighted common price of capital (WACC) of the corporate.
The broader the distinction between ROIC and WACC the extra environment friendly the corporate is in its allocation of capital.
As high-ROIC shares allocate the capital of their shareholders in a extremely worthwhile method, they’re among the many high-quality shares in market. On this article, we are going to talk about the prospects of three high-ROIC shares, that additionally pay dividends.
1. MasterCard Inc. (MA)
MasterCard is a world chief in digital funds. The corporate companions with 25,000 monetary establishments all over the world to supply an digital cost community. MasterCard has greater than 3.1 billion credit score and debit playing cards in use.
On January twenty ninth, 2026, MasterCard introduced fourth quarter and full 12 months outcomes for the interval ending December thirty first, 2025. For the quarter, income grew 17.3% to $8.8 billion, which was $22 million above estimates. Adjusted earnings-per-share of $4.76 in contrast favorably to $3.82 within the prior 12 months and was $0.52 greater than anticipated.
For the 12 months, income improved 16% to $32.8 billion whereas adjusted earnings-per-share of $17.01 in comparison with $14.60 in 2024.
On a neighborhood forex foundation, gross greenback volumes for the quarter grew 7% worldwide to $2.82 trillion through the quarter, with the U.S. up 4% and the remainder of the world rising 9%. Cross border volumes remained sturdy, up 14% from the prior 12 months.
Quarter-to-date by way of January twenty sixth, 2026, MasterCard repurchased 1.3 million shares at a median value of ~$550. The corporate has $16.7 billion, or 3.4% of its present market capitalization, remaining on its share repurchase authorization. The numerous buyback will assist enhance future earnings-per-share progress, with fewer shares excellent.
MasterCard has grown earnings-per-share at a fee of just about 19% per 12 months over the past decade. The corporate ought to proceed to supply double-digit annual EPS progress over the long-term. This progress will come from a mix of will increase in income, bettering margins, and share buybacks.
MasterCard has elevated its dividends for 15 years and has paid an uninterrupted dividend since 2006.
2. Starbucks Company (SBUX)
Starbucks started with a single retailer in Seattle’s Pike Place Market in 1971 and now has greater than 39,000 shops worldwide. Practically half of the shops are within the U.S. and almost 20% of the shops are in China.
The corporate operates beneath the Starbucks model, but in addition holds the Teavana, Evolution Recent, and Ethos Water manufacturers in its portfolio. The corporate generated $37 billion in annual income in fiscal 2025.
In late January, Starbucks reported (1/28/26) outcomes for the primary quarter of fiscal 2026. Comparable retailer gross sales accelerated from 1% within the earlier quarter to 4% year-over-year. Similar-store gross sales in China grew 7% for the primary time after a number of quarters in a row. Earnings-per-share decreased 35% on account of hefty investments within the enterprise, from $0.69 within the prior 12 months’s quarter to $0.56, lacking the analysts’ consensus by $0.03.
Administration initiated steerage for fiscal 2026. It expects not less than 3% progress of comparable gross sales and earnings-per-share of $2.15-$2.40. Starbucks has a powerful progress trajectory obtainable over the long-term because of a rising U.S. and Worldwide retailer depend, the place the corporate remains to be within the early innings of growth, coupled with pricing energy.
SBUX has elevated its dividend for 15 years.
3. Cardinal Well being (CAH)
Cardinal Well being is without doubt one of the “Large 3” drug distribution firms together with McKesson (MKC) and AmerisourceBergen (ABC). Cardinal Well being serves over 24,000 United States pharmacies and greater than 85% of the nation’s hospitals. Over 90% of the corporate’s income comes from the Pharma & Specialty areas.
On February fifth, 2026, Cardinal Well being introduced the outcomes for the second quarter of fiscal 12 months 2026 for the interval ending December thirty first, 2025. For the quarter, income grew 18.6% to $65.6 billion, which topped estimates by $360 million. Adjusted earnings-per-share of $2.63 per share in contrast favorably to $1.93 within the prior 12 months and was $0.26 higher than anticipated.
Acquisitions drastically aided outcomes through the quarter. For the quarter, income for the Pharmaceutical and Specialty Options section improved 19% to $60.7 billion whereas section revenue elevated 29% to $687 million.
Progress continues to be pushed by good points in model and specialty pharmaceutical merchandise from current and new prospects. Income for the International Medical Merchandise and Distribution section was up 3% to $3.3 billion. Section revenue of $37 million in contrast favorably to $18 million within the prior 12 months. Quantity continues to enhance on account of ongoing greater demand from current prospects.
Cardinal Well being offered up to date steerage for fiscal 12 months 2026 as effectively, with the corporate now anticipating adjusted earnings-per-share in a variety of $10.15 to $10.35 for the 12 months, up from $9.65 to $9.85.
Cardinal Well being has grown earnings-per-share by a median compound fee of 5.2% and 13% over the past 10- and five-year intervals of time, respectively. CAH has elevated its dividend for 39 consecutive years, putting it on the Dividend Aristocrats checklist.
Get the entire checklist of Highest Return On Invested Capital Shares right here
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Disclosure: No positions in any shares talked about
