9 High Yield Dividend Stocks With Bullish Options Sentiment

You'd think that high-yield dividend stocks would do exactly what their name suggests -- net you a very tidy sum in your pocket each quarter. And often, they do. However, it's important to remember that dividend yield is a ratio, comparing dividend per share to stock price.

Because "high yield" is always only relative to the price of a stock, it may just mean that its share price has dropped. But for the value investor, this isn't necessarily a bad thing. Sometimes, stocks show high dividend returns when their prices have been knocked by overly bearish investors, creating a golden investment opportunity for value hunters.

But how do you know when a high dividend yield stock is undervalued? Options trading can be a pretty reliable indicator in this department. Call options traders are usually savvy enough to recognize when a stock is trading below its fair value.

They look for stocks expected to see significant upward momentum over the coming weeks. If they're buying call options on a high dividend yield stock, it means they think most of the bad news is already priced in, creating opportunity for near-term gains.

Here's a list of nine high-yield stocks with bullish options sentiment -- are they worth adding to your value portfolio? (Click here to access interactive tools to analyze these ideas.)

Options data sourced from Schaeffer's Research.

Interactive Chart: Press Play to see how the annual returns for all the stocks mentioned above have changed over the last two years.

Kapitall's Eben Esterhuizen and Alicia Sellitti do not own shares of any companies mentioned.