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Do you like the comfort that dividend income can bring? For ideas on how to search for interesting dividend stocks, we ran a screen.

We screened the S&P 500 for stocks paying dividend yields above 1% and sustainable payout ratios below 50%.

We then screened for those with bullish sentiment from institutional buying, with net positive purchases in the quarter representing at least 5% of share float. This indicates "smart money" investors are bullish on these names' prospects.

Interactive Chart: Press Play to compare changes in return over the last year for the stocks mentioned below.

Do you think these stocks pay reliable dividends? Use this list as a starting point for your own analysis.

1. Cliffs Natural Resources Inc. (NYSE:CLF): Produces iron ore pellets, lump and fines iron ore, and metallurgical coal products. Market cap at $5.09B, most recent closing price at $35.71. Net institutional purchases in the current quarter at 12.0M shares, which represents about 8.49% of the company's float of 141.27M shares. Dividend yield at 7%, and payout ratio at 28%. The top 2 holders of the stock are Capital World Advisors, and The Vanguard Group.

2. Safeway Inc. (NYSE:SWY): Operates as a food and drug retailer in North America. Market cap at $4.66B, most recent closing price at $19.43. Net institutional purchases in the current quarter at 12.3M shares, which represents about 5.19% of the company's float of 236.97M shares. Dividend yield at 3.6%, and payout ratio at 31%. The top 2 holders of the stock are FMR, LLC, and The Vanguard Group.

3. The Washington Post Company (WPO): Operates as a diversified education and media company in the United States and internationally. Market cap at $2.86B, most recent closing price at $387.10. Net institutional purchases in the current quarter at 609.2K shares, which represents about 13.97% of the company's float of 4.36M shares. Dividend yield at 2.5%, and payout ratio at 36%. The top 2 holders of the stock are Berkshire Hathaway, and ING Investment Management.

*Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

Source: 3 S&P 500 Dividend Stocks Being Snapped Up By Money Managers