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Investors searching for high yield stocks with strong accounting trends, take note. To create the list below we screened a universe of more than 300 stocks offering yields between 2%-5%. This allowed us to avoid high yield names with potentially unsustainable payouts.

To make our list beneficial to fundamentally-driven investors, we screened the stocks for strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable are 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.

Finally, we looked for those stocks with 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.

Finally, we pulled only the names reporting earnings next week.

The List

We were left with 4 companies on our list. All have encouraging accounting trends. Do these strong fundamentals encourage you to invest? Use the list below as a staring point of your analysis.

Click play below for the change in quarterly sales of the four dividend paying companies on our list.

1. Dominion Resources, Inc. (NYSE:D): Engages in producing and transporting energy in the United States.

  • Market cap at $34.5B, most recent closing price at $59.82.
  • Revenue grew by 1.21% during the most recent quarter ($3,167M vs. $3,129M y/y). Accounts receivable grew by -15.63% during the same time period ($1,717M vs. $2,035M y/y). Receivables, as a percentage of current assets decreased from 37.48% to 33.4% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Revenue grew by 1.21% during the most recent quarter ($3,167M vs. $3,129M y/y). Inventory grew by -6.6% during the same time period ($1,259M vs. $1,348M y/y). Inventory, as a percentage of current assets decreased from 24.83% to 24.49% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Dividend yield at 3.8%. The company is expected to report earnings on April 25th, 2013.

2. Brinker International Inc. (NYSE:EAT): Develops, operates and franchises various restaurant brands primarily in the United States.

  • Market cap at $2.71B, most recent closing price at $38.27.
  • Revenue grew by 1.15% during the most recent quarter ($689.76M vs. $681.9M y/y). Accounts receivable grew by -8.16% during the same time period ($80.49M vs. $87.64M y/y). Receivables, as a percentage of current assets, decreased from 34.68% to 30.65% during the most recent quarter (comparing 13 weeks ending 2012-12-26 to 13 weeks ending 2011-12-28).
  • Revenue grew by 1.15% during the most recent quarter ($689.76M vs. $681.9M y/y). Inventory grew by -3.73% during the same time period ($26.34M vs. $27.36M y/y). Inventory, as a percentage of current assets decreased from 10.83% to 10.03% during the most recent quarter (comparing 13 weeks ending 2012-12-26 to 13 weeks ending 2011-12-28).
  • Dividend yield at 2.1%. The company is expected to report earnings on April 23rd, 2013.

3. Illinois Tool Works Inc. (NYSE:ITW): Manufactures a range of industrial products and equipment worldwide.

  • Market cap at $28.33B, most recent closing price at $62.76.
  • Revenue grew by 0.4% during the most recent quarter ($4,221M vs. $4,203.99M y/y). Accounts receivable grew by -2.73% during the same time period ($2,742M vs. $2,818.89M y/y). Receivables, as a percentage of current assets, decreased from 41.16% to 34.45% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Revenue grew by 0.4% during the most recent quarter ($4,221M vs. $4,203.99M y/y). Inventory grew by -7.63% during the same time period ($1,585M vs. $1,715.86M y/y). Inventory, as a percentage of current assets, decreased from 25.05% to 19.91% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Dividend yield at 2.5%. The company is expected to report earnings on April 22nd, 2013.

4. Molex Inc. (NASDAQ:MOLX): Manufactures and sells electronic components worldwide.

  • Market cap at $5.04B, most recent closing price at $28.38.
  • Revenue grew by 12.84% during the most recent quarter ($967.74M vs. $857.6M y/y). Accounts receivable grew by 5.32% during the same time period ($745.85M vs. $708.2M y/y). Receivables, as a percentage of current assets, decreased from 34.57% to 34.47% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Revenue grew by 12.84% during the most recent quarter ($967.74M vs. $857.6M y/y). Inventory grew by 2.65% during the same time period ($566.89M vs. $552.26M y/y). Inventory, as a percentage of current assets, decreased from 26.95% to 26.2% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Dividend yield at 3.3%. The company is expected to report earnings on April 23rd, 2013.

*Accounting data sourced from Google Finance, EPS from Yahoo Finance, all other data sourced from Finviz.

Source: 4 Dividend Stocks Reporting Earnings Next Week With Encouraging Accounting Trends