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

To create the list below we started by looking for stocks with a return on investment (ROI) above the industry average. The return on investment (ROI) is a popular measure of profitability. It is calculated by dividing net profits by total assets.

We took this a step further by looking for stocks that pay a dividend yield of at least 1%, but not higher than 5%. This allowed us to focus on names with a strong credit profile. We now have a list of dividend stocks with a ROI above industry average.

Finally, we researched their 13F's looking 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.

The List

Interactive Chart: Press Play to compare changes in analyst changes over the last two years for the five stocks mentioned below.

Would you invest in these companies? Use this list as a starting point of your analysis.

1. AFLAC Inc. (NYSE:AFL): Provides supplemental health and life insurance.

  • Market cap at $22.89B, most recent closing price at $48.97.
  • Net institutional purchases in the current quarter at 32.3M shares, which represents about 7.05% of the company's float of 458.04M shares. The 2 top holders of the stock are The Vanguard Group, and State Street Capital.
  • TTM Return on Investments at 14.38% vs. an industry average at 6.47%.
  • Dividend yield at 2.9%.

2. National Research Corp. (NRCI): Provides performance measurement and improvement services, healthcare analytics, and governance education to the healthcare industry in the United States and Canada.

  • Market cap at $385.79M, most recent closing price at $55.83.
  • Net institutional purchases in the current quarter at 301.1K shares, which represents about 10.83% of the company's float of 2.78M shares. The 2 top holders of the stock are Bessemer Group, and Kayne Anderson Rudnick Investment Management.
  • TTM Return on Investments at 18.64% vs. an industry average at 9.21%.
  • Dividend yield at 2.2%

3. Nu Skin Enterprises Inc. (NYSE:NUS): Develops and distributes anti-aging personal care products and nutritional supplements worldwide.

  • Market cap at $2.83B, most recent closing price at $48.52.
  • Net institutional purchases in the current quarter at 3.4M shares, which represents about 6.64% of the company's float of 51.23M shares. The 2 top holders of the stock are Royce & Associates, and The Vanguard Group.
  • TTM Return on Investments at 28.52% vs. an industry average at 18.5%.
  • Dividend yield at 2.5%.

4. ResMed Inc. (NYSE:RMD): Engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders.

  • Market cap at $6.32B, most recent closing price at $44.04.
  • Net institutional purchases in the current quarter at 8.0M shares, which represents about 5.67% of the company's float of 141.09M shares. The 2 top holders of the stock are The Vanguard Group, and The Commonwealth Bank of Australia.
  • TTM Return on Investments at 14.99% vs. an industry average at 9.46%.
  • Dividend yield at 1.6%.

5. Meridian Bioscience Inc. (NASDAQ:VIVO): Develops, sells, and distributes diagnostic test kits.

  • Market cap at $897.57M, most recent closing price at $21.67.
  • Net institutional purchases in the current quarter at 3.1M shares, which represents about 7.71% of the company's float of 40.21M shares. The 2 top holders of the stock are Neuberger Berman Group, and Brown Capital Management.
  • TTM Return on Investments at 24.99% vs. an industry average at 9.46%.
  • Dividend yield at 3.5%.

* All accounting data sourced from Google Finance

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: Money Managers Are Buying 5 Dividend Stocks With A Higher ROI Than Industry Peers