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Interested in stocks paying dividend income but don't know where to start looking? Here are some ideas to get you started.

We ran a screen on stocks paying dividend yields above 1% and sustainable payout ratios below 50% for those currently rallying above their 20-day, 50-day, and 200-day moving averages.

We then screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks are poised to outperform? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases over the last quarter as a percent of share float.

1. Jack Henry & Associates Inc. (NASDAQ:JKHY): Provides integrated computer systems and services for in-house and outsourced data processing to commercial banks, credit unions, and other financial institutions primarily in the United States. Market cap at $3.3B, most recent closing price at $38.39. Net institutional purchases in the current quarter at 64.3M shares, which represents about 76.73% of the company's float of 83.80M shares. The stock is currently trading 0.46% above its 20-day moving average, 1.2% above its 50-day moving average, and 9.51% above its 200-day moving average. Dividend yield at 1.2%.

2. SK Telecom Co. Ltd. (NYSE:SKM): Provides wireless telecommunications services using code division multiple access (OTCPK:CDMA) and wide-band CDMA technologies. Market cap at $11.19B, most recent closing price at $15.39. Net institutional purchases in the current quarter at 173.0M shares, which represents about 71.61% of the company's float of 241.57M shares. The stock is currently trading 0.43% above its 20-day moving average, 3.35% above its 50-day moving average, and 13.29% above its 200-day moving average. Dividend yield at 5.08%.

3. PolyOne Corporation (NYSE:POL): Provides specialized polymer materials, services, and solutions with operations in thermoplastic compounds, specialty polymer formulations, color and additive systems, thermoplastic resin distribution, and specialty polyvinyl chloride resins. Market cap at $1.73B, most recent closing price at $19.40. Net institutional purchases in the current quarter at 58.4M shares, which represents about 67.38% of the company's float of 86.67M shares. The stock is currently trading 1.26% above its 20-day moving average, 10.10% above its 50-day moving average, and 29.93% above its 200-day moving average. Dividend yield at 1.03%.

4. Delek US Holdings Inc. (NYSE:DK): Engages in refining, wholesaling, and marketing petroleum products in the United States. Market cap at $1.56B, most recent closing price at $26.16. Net institutional purchases in the current quarter at 8.1M shares, which represents about 38.52% of the company's float of 21.03M shares. The stock is currently trading 5% above its 20-day moving average, 4.21% above its 50-day moving average, and 36% above its 200-day moving average. Dividend yield at 1.53%.

5. Alon USA Energy, Inc. (NYSE:ALJ): Operates as an independent refiner and marketer of petroleum products in south central, southwestern, and western regions of the United States. Market cap at $850.43M, most recent closing price at $13.88. Net institutional purchases in the current quarter at 5.0M shares, which represents about 27.98% of the company's float of 17.87M shares. The stock is currently trading 5% above its 20-day moving average, 3.09% above its 50-day moving average, and 30.94% above its 200-day moving average. Dividend yield at 1.15%.

6. Metals USA Holdings Corp. (NYSE:MUSA): Market cap at $552.42M, most recent closing price at $14.89. Net institutional purchases in the current quarter at 3.0M shares, which represents about 24.75% of the company's float of 12.12M shares. The stock is currently trading 4.57% above its 20-day moving average, 8.95% above its 50-day moving average, and 5.85% above its 200-day moving average. Dividend yield at 1.61%

7. Sturm, Ruger & Co. Inc. (NYSE:RGR): Engages in the design, manufacture, and sale of firearms in the United States. Market cap at $1.02B, most recent closing price at $53.07. Net institutional purchases in the current quarter at 3.0M shares, which represents about 16.2% of the company's float of 18.52M shares. The stock is currently trading 14.42% above its 20-day moving average, 15.26% above its 50-day moving average, and 22.58% above its 200-day moving average. Dividend yield at 2.44%.

Source: 7 Rallying Dividend Stocks Being Bought By Hedge Funds