20 High Yield, Highly Profitable Stocks

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 |  Includes: ARCC, BMY, CTL, FTR, HCN, HCP, KIM, KMB, MFA, MRK, OHI, OLN, PBI, PCL, PFE, RGC, T, VTR, VZ, WIN
by: Kapitall

The following is a list of high yield dividend stocks. All of the companies mentioned below have been more profitable than their competitors over the last five years, when comparing gross and net profit margins.

This list might offer an interesting starting point to a dividend investor.

Will these companies continue to be more profitable than their industry competitors? What do you think? Perhaps more importantly, considering their track record of profitability, is most of the good news already priced into these stock prices?

Profitability data and industry comps sourced from Reuters, short float, dividend and performance data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by dividend yield.

1. MFA Financial, Inc. (NYSE:MFA): REIT Industry. Market cap of $2.28B. Dividend yield at 11.55%. 5-year average gross margin at 32.87% vs. industry average at 10.74%. 5-year average net profit margin at 18.99% vs. industry average at 1.14%. Short float at 4.44%, which implies a short ratio of 3.88 days. The stock has gained 26.01% over the last year.

2. Ares Capital Corporation (NASDAQ:ARCC): Diversified Investments Industry. Market cap of $3.15B. Dividend yield at 8.56%. 5-year average gross margin at 73.78% vs. industry average at 53.28%. 5-year average net profit margin at 31.75% vs. industry average at 26.68%. Short float at 0.7%, which implies a short ratio of 0.86 days. The stock has gained 36.59% over the last year.

3. Frontier Communications Corporation (NYSE:FTR): Telecom Services Industry. Market cap of $9.16B. Dividend yield at 8.13%. 5-year average gross margin at 90.6% vs. industry average at 54.1%. 5-year average net profit margin at 9.04% vs. industry average at 7.33%. Short float at 4.36%, which implies a short ratio of 4.46 days. The stock has gained 34.8% over the last year.

4. Windstream Corporation (NASDAQ:WIN): Telecom Services Industry. Market cap of $6.18B. Dividend yield at 7.82%. 5-year average gross margin at 62.29% vs. industry average at 54.1%. 5-year average net profit margin at 16.31% vs. industry average at 7.33%. Short float at 3.35%, which implies a short ratio of 3.36 days. The stock has gained 29.61% over the last year.

5. CenturyLink, Inc. (NYSE:CTL): Telecom Services Industry. Market cap of $12.73B. Dividend yield at 6.91%. 5-year average gross margin at 64.67% vs. industry average at 54.1%. 5-year average net profit margin at 13.22% vs. industry average at 7.33%. Short float at 9.39%, which implies a short ratio of 7.49 days. The stock has gained 30.69% over the last year.

6. Omega Healthcare Investors Inc. (NYSE:OHI): REIT Industry. Market cap of $2.15B. Dividend yield at 6.79%. 5-year average gross margin at 93.46% vs. industry average at 33.28%. 5-year average net profit margin at 40.29% vs. industry average at 21.05%. Short float at 5.47%, which implies a short ratio of 6.96 days. The stock has gained 17.59% over the last year.

7. Pitney Bowes Inc. (NYSE:PBI): Business Equipment Industry. Market cap of $4.88B. Dividend yield at 6.09%. 5-year average gross margin at 45.12% vs. industry average at 44.56%. 5-year average net profit margin at 8.14% vs. industry average at 6.11%. Short float at 8.89%, which implies a short ratio of 9.05 days. The stock has gained 18.64% over the last year.

8. AT&T, Inc. (NYSE:T): Telecom Services Industry. Market cap of $168.32B. Dividend yield at 6.04%. 5-year average gross margin at 54.11% vs. industry average at 54.1%. 5-year average net profit margin at 10.59% vs. industry average at 7.33%. Short float at 0.89%, which implies a short ratio of 2.19 days. The stock has gained 18.52% over the last year.

9. Regal Entertainment Group (NYSE:RGC): Movie Production, Theaters Industry. Market cap of $1.88B. Dividend yield at 5.91%. 5-year average gross margin at 44.68% vs. industry average at 35.51%. 5-year average net profit margin at 5.55% vs. industry average at 4.15%. Short float at 9.59%, which implies a short ratio of 6.79 days. The stock has lost -13.43% over the last year.

10. Health Care REIT Inc. (NYSE:HCN): REIT Industry. Market cap of $6.47B. Dividend yield at 5.77%. 5-year average gross margin at 92.0% vs. industry average at 47.77%. 5-year average net profit margin at 27.54% vs. industry average at 4.68%. Short float at 6.29%, which implies a short ratio of 4.59 days. The stock has gained 17.65% over the last year.

11. Verizon Communications Inc. (NYSE:VZ): Telecom Services Industry. Market cap of $99.62B. Dividend yield at 5.53%. 5-year average gross margin at 60.43% vs. industry average at 54.1%. 5-year average net profit margin at 9.86% vs. industry average at 7.33%. Short float at 1.94%, which implies a short ratio of 3.08 days. The stock has gained 22.11% over the last year.

12. HCP, Inc. (NYSE:HCP): REIT Industry. Market cap of $11.19B. Dividend yield at 5.16%. 5-year average gross margin at 81.71% vs. industry average at 47.77%. 5-year average net profit margin at 14.61% vs. industry average at 4.68%. Short float at 3.53%, which implies a short ratio of 2.65 days. The stock has gained 30.1% over the last year.

13. Bristol-Myers Squibb Company (NYSE:BMY): Drug Manufacturer. Market cap of $44.5B. Dividend yield at 5.08%. 5-year average gross margin at 69.49% vs. industry average at 48.48%. 5-year average net profit margin at 17.53% vs. industry average at 13.32%. Short float at 2.69%, which implies a short ratio of 4.93 days. The stock has gained 12.21% over the last year.

14. Merck & Co. Inc. (NYSE:MRK): Drug Manufacturer. Market cap of $104.13B. Dividend yield at 4.50%. 5-year average gross margin at 73.45% vs. industry average at 48.48%. 5-year average net profit margin at 27.82% vs. industry average at 13.32%. Short float at 0.69%, which implies a short ratio of 1.27 days. The stock has lost -9.02% over the last year.

15. Pfizer Inc. (NYSE:PFE): Drug Manufacturer. Market cap of $147.78B. Dividend yield at 4.34%. 5-year average gross margin at 82.22% vs. industry average at 48.48%. 5-year average net profit margin at 17.98% vs. industry average at 13.32%. Short float at 0.64%, which implies a short ratio of 1.15 days. The stock has gained 1.43% over the last year.

16. Kimberly-Clark Corporation (NYSE:KMB): Personal Products Industry. Market cap of $26.09B. Dividend yield at 4.13%. 5-year average gross margin at 31.46% vs. industry average at 24.5%. 5-year average net profit margin at 9.15% vs. industry average at 2.94%. Short float at 1.37%, which implies a short ratio of 2.02 days. The stock has gained 10.43% over the last year.

17. Plum Creek Timber Co. Inc. (NYSE:PCL): REIT Industry. Market cap of $6.69B. Dividend yield at 4.06%. 5-year average gross margin at 31.41% vs. industry average at 30.5%. 5-year average net profit margin at 17.92% vs. industry average at 6.36%. Short float at 9.51%, which implies a short ratio of 10.2 days. The stock has gained 17.58% over the last year.

18. Olin Corp. (NYSE:OLN): Chemicals Industry. Market cap of $1.57B. Dividend yield at 4.04%. 5-year average gross margin at 22.2% vs. industry average at 18.69%. 5-year average net profit margin at 9.68% vs. industry average at 6.6%. Short float at 7.37%, which implies a short ratio of 7.99 days. The stock has gained 21.93% over the last year.

19. Kimco Realty Corporation (NYSE:KIM): REIT Industry. Market cap of $7.25B. Dividend yield at 4.03%. 5-year average gross margin at 71.97% vs. industry average at 42.83%. 5-year average net profit margin at 39.48% vs. industry average at 29.85%. Short float at 4.18%, which implies a short ratio of 3.64.

20. Ventas Inc. (NYSE:VTR): REIT Industry. Market cap of $8.4B. Dividend yield at 4.0%. 5-year average gross margin at 75.14% vs. industry average at 47.77%. 5-year average net profit margin at 22.72% vs. industry average at 4.68%. Short float at 7.35%, which implies a short ratio of 9.04 days. The stock has gained 31.09% over the last year.

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