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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% 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. NRG Energy, Inc. (NYSE:NRG): Operates as a wholesale power generation company. Market cap at $5.29B, most recent closing price at $23.19. Net institutional purchases in the current quarter at 15.0M shares, which represents about 6.6% of the company's float of 227.12M shares. The stock is currently trading 2.99% above its 20-day moving average, 5.15% above its 50-day moving average, and 21% above its 200-day moving average. Dividend yield at 1.58%. As of September 29th, 2012, the top 2 holders of the stock are T. Rowe Price (17%), and Franklin Resources (9.35%)

2. Lithia Motors Inc. (NYSE:LAD): Operates as an automotive franchisee and retailer of new and used vehicles. Market cap at $952.5M, most recent closing price at $37.28. Net institutional purchases in the current quarter at 1.3M shares, which represents about 7.15% of the company's float of 18.19M shares. The stock is currently trading 0.1% above its 20-day moving average, 2.34% above its 50-day moving average, and 23.4% above its 200-day moving average. Dividend yield at 1.1%. As of September 30th, 2012, the top 2 holders of the stock are FMR, LLC (11.6%), and Dimensional Fund Advisors (6.3%).

3. The Blackstone Group (NYSE:BX): Provides alternative asset management and financial advisory services worldwide. Market cap at $17.46B, most recent closing price at $15.32. Net institutional purchases in the current quarter at 29.7M shares, which represents about 7.36% of the company's float of 403.33M shares. The stock is currently trading 2.24% above its 20-day moving average, 2.6% above its 50-day moving average, and 10.45% above its 200-day moving average. Dividend yield at 2.62%. As of September 30th, 2012, the top 2 holders of the stock are Waddell & Reed Financial (6%), and FMR, LLC (4%).

4. Watsco Inc. (NYSE:WSO): Distributes air conditioning, heating and refrigeration equipment, and related parts and supplies in the United States. Market cap at $2.63B, most recent closing price at $76.20. Net institutional purchases in the current quarter at 1.7M shares, which represents about 7.45% of the company's float of 22.82M shares. The stock is currently trading 2.85% above its 20-day moving average, 5.27% above its 50-day moving average, and 8.53% above its 200-day moving average. Dividend yield at 3.3%. As of September 30th, 2012, the top 2 holders of the stock are BlackRock Fund Advisors (13%), and FMR, LLC (9%).

5. Kohlberg Kravis Roberts & Co. (NYSE:KKR): A private equity and venture capital firm specializing in acquisitions, leveraged buyouts, management buyouts, and mezzanine investments in large cap companies. Market cap at $3.55B, most recent closing price at $14.57. Net institutional purchases in the current quarter at 21.5M shares, which represents about 9.89% of the company's float of 217.44M shares. The stock is currently trading 3.34% above its 20-day moving average, 1.2% above its 50-day moving average, and 6.78% above its 200-day moving average. Dividend yield at 5.75%. As of September 30th, 2012, the top 2 holders of the stock are Lexington Partners VI Holdings (8%), and Morgan Stanley (7%).

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

Source: 5 Rallying Dividend Stocks Being Bought By Money Managers