5 Dividend-Paying Stocks the Smart Money Loves

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Let's face it, not all of us have time to do exhaustive research to unearth great stocks like McDonald's (NYSE: MCD) or Southwest Airlines (NYSE: LUV).

But that doesn't mean we can't follow and utilize the work of other smart investors. One way to do this is to track the stock picks of All-Star investors in CAPS, The Motley Fool's interactive stock-rating database.

All-Stars have a rating of 80-plus out of 100, meaning their picks are outperforming 80% of the more than 115,000 CAPS members. The top players have accuracy levels of well over 60%, so it might pay to follow what they do. 

We can easily search for their top picks using the handy CAPS screener. For example, a search for stocks with …  

• At least 100 All-Star outperform picks.
• A dividend yield between 4% and 8%.
• Insider ownership over 10%.

... returned the following:

Company Name	CAPS Rating (5 max)	All-Star Outperform Picks	Dividend Yield %	% Insider Ownership
Alliance Resource Partners (Nasdaq: ARLP)	*****	124	5.9%	44%
Cal-Maine Foods (Nasdaq: CALM)	****	168	5.1%	34%
Enterprise Products Partners (NYSE: EPD)	*****	177	7.3%	35%
Genco Shipping & Trading (NYSE: GNK)	****	204	7%	14%
Navios Maritime Holdings (NYSE: NM)	*****	244	4.1%	22%

Source: Motley Fool CAPS. Data as of Aug. 7, 2008.

No one but you can make the final decision on your investments, but it feels a whole lot better knowing a lot of other smart people are on your side. Feel free to use the CAPS screener to find more potential winners.