Do you prefer stocks that pay part of their returns in dividends? Many investors rely on dividend stocks as a source of reliable income. For a closer look at dividend-yielding names, we ran a screen.
Keeping reliability in mind, we started by screening for dividend stocks with strong liquidity, measured by current ratios above 3. The current ratio is current assets/current liabilities, and it measures a company's liquidity. This is important for dividend stocks because a company can use their sources of liquidity to continue paying their dividends in the event that their profits drop.
We also screened for stocks paying dividend yields above 1% and sustainable payout ratios below 50%.
We then screened for those stocks with bullish smart money sentiment, with significant decreases in shares shorted month over month.
Business section: Investing ideas
Here below are the stocks that resulted from this screen. These dividend names have strong liquidity and bullish sentiment from short-sellers.
Do you think these names pay strong dividends? (Click here to access free, interactive tools to analyze these ideas.)
1. Advance America, Cash Advance Centers
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Alexander Crawford does not own any of the shares mentioned above. Short data sourced from Yahoo! Finance.