Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

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.

(click to enlarge)

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. Delek US Holdings Inc. (NYSE:DK): Engages in refining, wholesaling, and marketing petroleum products in the United States. Market cap at $1.57B, most recent closing price at $26.38.

Net institutional purchases in the current quarter at 9.0M shares, which represents about 38.58% of the company's float of 23.33M shares. As of September 30th, 2012, the top 2 holders of the stock are The Vanguard Group (7.8%), and State Street Capital (7.7%)

The stock is currently trading 0.46% above its 20-day moving average, 2.99% above its 50-day moving average, and 28.63% above its 200-day moving average.

Dividend yield at 1.5%.

2. 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 $882.9M, most recent closing price at $14.41.

Net institutional purchases in the current quarter at 5.6M shares, which represents about 31.34% of the company's float of 17.87M shares. As of September 30th, 2012, the top 2 holders of the stock are Dimensional Fund Advisors (3.7%), and American Century Companies (1.8%)

The stock is currently trading 2.66% above its 20-day moving average, 5.29% above its 50-day moving average, and 30% above its 200-day moving average.

Dividend yield at 1.1%.

3. Bryn Mawr Bank Corp. (NASDAQ:BMTC): Operates as the holding company for The Bryn Mawr Trust Company, which provides various commercial and retail banking services. Market cap at $307.13M, most recent closing price at $22.92.

Net institutional purchases in the current quarter at 1.2M shares, which represents about 9.34% of the company's float of 12.85M shares. As of September 30th, 2012, the top 2 holders of the stock are Ameriprise Financial (7.2%), and Wellington Management (6.7%).

The stock is currently trading 3.23% above its 20-day moving average, 3% above its 50-day moving average, and 6% above its 200-day moving average.

Dividend yield at 2.79%.

4. Peabody Energy Corp. (NYSE:BTU): Engages in the exploration, mining, and production of coal. Market cap at $7.35B, most recent closing price at $27.37.

Net institutional purchases in the current quarter at 23.2M shares, which represents about 8.68% of the company's float of 267.26M shares. As of September 29th 2012, the top 2 holders of the stock are J.P. Morgan (6%), and The Vanguard Group (5.8%).

The stock is currently trading 6.44% above its 20-day moving average, 5.43% above its 50-day moving average, and 8.76% above its 200-day moving average.

Dividend yield at 1.24%.

5. Eaton Corporation (NYSE:ETN): Operates as a power management company worldwide. Market cap at $25.07B, most recent closing price at $53.88.

Net institutional purchases in the current quarter at 20.9M shares, which represents about 6.3% of the company's float of 331.68M shares. As of September 30th, 2012, the top 2 holders of the stock are Wellington Management, and Capital World Advisors.

The stock is currently trading 4.98% above its 20-day moving average, 10.65% above its 50-day moving average, and 20% above its 200-day moving average.

Dividend yield at 2.82%.

6. Cooper Tire & Rubber Co. (NYSE:CTB): Together with its subsidiaries, manufactures and markets replacement tires in North America and internationally. Market cap at $1.59B, most recent closing price at $25.26.

Net institutional purchases in the current quarter at 3.4M shares, which represents about 5.81% of the company's float of 58.52M shares. As of September 30th, 2012, the top 2 holders of the stock are The Vanguard Group (5.6%), and National Rural Electric (4.5%).

The stock is currently trading 3.11% above its 20-day moving average, 12.93% above its 50-day moving average, and 38.15% above its 200-day moving average.

Dividend yield at 1.66%.

7. Carpenter Technology Corp. (NYSE:CRS): Engages in the manufacturing, fabrication, and distribution of specialty metals. Market cap at $2.73B, most recent closing price at $51.84.

Net institutional purchases in the current quarter at 2.7M shares, which represents about 5.74% of the company's float of 47.00M shares.As of September 30th, 2012, the top 2 holders of the stock are Goldman Sachs (4.9%), and T. Rowe Price (4.6%).

The stock is currently trading 7% above its 20-day moving average, 4.5% above its 50-day moving average, and 4.4% above its 200-day moving average.

Dividend yield at 1.39%.

8. CBOE Holdings, Inc. (NASDAQ:CBOE): Intends to operate as the holding company for Chicago Board Options Exchange , which operates as an organized marketplace for the trade of standardized, listed options on equity securities. Market cap at $2.63B, most recent closing price at $30.17.

Net institutional purchases in the current quarter at 4.4M shares, which represents about 5.12% of the company's float of 85.97M shares. As of September 29th, 2012, the top 2 holders of the stock are T.Rowe Price (7.8%), and Horizon Kinetics (5.55%)

The stock is currently trading 1% above its 20-day moving average, 0.4% above its 50-day moving average, and 5% above its 200-day moving average.

Dividend yield at 2%.

*Institutional data sourced from Fidelity, rallying and other data sourced from Finviz.

Source: 8 Rallying Dividend Stocks Being Bought By Money Managers