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Looking to trade on earnings season? To create the list below, we created a universe of stocks that are expected to report earnings in April that boast attractive dividends and strong fundamentals.

We looked for those stocks that paid a dividend of at least 1% but not more than 5%. This allowed us to stay away from the riskier high yield space.

We then screened for strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables, the healthier the company's revenue.

We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

We then looked for stocks with inventory trends over the last year. Specifically, we screened for faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.

The List

Our final list consisted of 4 stocks.

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

Do you think these names are poised to move higher during earnings season? Use this list as a starting point for your own analysis.

1. American Greetings Corp. (NYSE:AM-OLD): Engages in the design, manufacture, and sale of greeting cards and other social expression products worldwide.

  • Market cap at $573.32M, most recent closing price at $18.12.
  • Revenue grew by 8.99% during the most recent quarter ($506.81M vs. $465.01M y/y). Accounts receivable grew by -15.93% during the same time period ($197.84M vs. $235.32M y/y). Receivables, as a percentage of current assets, decreased from 32.85% to 25.98% during the most recent quarter (comparing 3 months ending 2012-11-23 to 3 months ending 2011-11-25).
  • Inventory grew by 23.28% during the same time period ($264.33M vs. $214.41M y/y). Inventory, as a percentage of current assets, increased from 29.93% to 34.71% during the most recent quarter (comparing 3 months ending 2012-11-23 to 3 months ending 2011-11-25).
  • Dividend yield at 3.3%. The company is expected to report earnings on April 26th, 2013.
  • Short sellers seem optimistic: Shares shorted have decreased from 11.24M to 10.49M over the last month, a decrease which represents about 2.57% of the company's float of 29.21M shares. Days to cover ratio at 19.55 days.

2. Bunge Limited (NYSE:BG): Engages in the agriculture and food businesses worldwide.

  • Market cap at $10.34B, most recent closing price at $70.56.
  • Revenue grew by 8.59% during the most recent quarter ($17,040M vs. $15,692M y/y). Accounts receivable grew by -22.27% during the same time period ($2,471M vs. $3,179M y/y). Receivables, as a percentage of current assets, decreased from 24.22% to 17.57% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Inventory grew by 14.95% during the same time period ($6,590M vs. $5,733M y/y). Inventory, as a percentage of current assets, increased from 43.67% to 46.85% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Dividend yield at 1.6%. The company is expected to report earnings on April 25th, 2013.
  • Don't get too excited. This stock has a history of reporting negative earning surprises: In Mar 2012: Reported EPS at 0.69 vs. estimate at 1.18 (surprise of -41.5%). In Jun 2012: Reported EPS at 1.2 vs. estimate at 1.34 (surprise of -10.4%). In Sep 2012: Reported EPS at 2.08 vs. estimate at 2.17 (surprise of -4.1%). In Dec 2012: Reported 0.57 vs. estimate at 2.36 (surprise of -75.8%. [Average earnings surprise at -32.95%].

3. Cabot Corp. (NYSE:CBT): Provides specialty chemicals and performance materials worldwide.

  • Market cap at $2.1B, most recent closing price at $33.0.
  • Revenue grew by 7.61% during the most recent quarter ($820M vs. $762M y/y). Accounts receivable grew by -6.64% during the same time period ($619M vs. $663M y/y). Receivables, as a percentage of current assets, decreased from 44.62% to 43.75% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Inventory grew by 42.13% during the same time period ($587M vs. $413M y/y). Inventory, as a percentage of current assets, increased from 27.79% to 41.48% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Dividend yield at 2.4%. The company is expected to report earnings on April 30th, 2013.

4. Covidien plc (COV): Develops, manufactures, and sells healthcare products for use in clinical and home settings in the United States and internationally.

  • Market cap at $32.B, most recent closing price at $67.79.
  • Revenue grew by 5.45% during the most recent quarter ($3,056M vs. $2,898M y/y). Accounts receivable grew by -1.4% during the same time period ($1,763M vs. $1,788M y/y). Receivables, as a percentage of current assets, decreased from 29.65% to 29.41% during the most recent quarter (comparing 13 weeks ending 2012-12-28 to 13 weeks ending 2011-12-30).
  • Inventory grew by 18.23% during the same time period ($1,835M vs. $1,552M y/y). Inventory, as a percentage of current assets, increased from 25.74% to 30.61% during the most recent quarter (comparing 13 weeks ending 2012-12-28 to 13 weeks ending 2011-12-30).
  • Dividend yield at 1.5%. The company is expected to report earnings on April 26th, 2013.

*Accounting 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 Rebecca Lipman, 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: 4 Dividend Paying Companies Reporting Earnings In April With Encouraging Accounting Trends