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

Looking for income investments with good momentum? If so, this list might be a great launching pad for ideas...

Here we present 12 stocks with dividend yields between 4-7% that have recently hit a new 52-week high. These companies are also highly profitable, beating their industry averages for TTM gross, operating, and pretax margins.

As profitability is the base for a sustainable dividend, this has implications for both their capital gains and income returns...



Do you think these companies have sustainable dividends? Use this list as a starting-off point for your own analysis into income opportunities.

List sorted by dividend yield.

1. Kinder Morgan Energy Partners LP (KMP): Oil & Gas Pipelines Industry. Market cap of $24.31B. Dividend yield at 5.93%. TTM gross margin at 39.00% vs. industry average of 36.17%. TTM operating margin at 21.84% vs. industry average of 17.09%. TTM pretax margin at 18.65% vs. industry average of 17.36%. The stock has a relatively low correlation to the market (beta = 0.31), which may be appealing to risk-averse investors. The stock has gained 21.49% over the last year.



2. TransAlta Corp. (TAC): Electric Utilities Industry. Market cap of $4.82B. Dividend yield at 5.41%. TTM gross margin at 61.74% vs. industry average of 32.83%. TTM operating margin at 25.06% vs. industry average of 19.82%. TTM pretax margin at 16.20% vs. industry average of 8.38%. The stock has gained 10.77% over the last year.



3. Williams Partners L.P. (WPZ): Specialty Chemicals Industry. Market cap of $16.12B. Dividend yield at 5.16%. TTM gross margin at 40.23% vs. industry average of 35.57%. TTM operating margin at 23.39% vs. industry average of 16.60%. TTM pretax margin at 19.30% vs. industry average of 17.01%. The stock has gained 40.95% over the last year.



4. Magellan Midstream Partners LP (MMP): Oil & Gas Pipelines Industry. Market cap of $6.96B. Dividend yield at 4.91%. TTM gross margin at 38.95% vs. industry average of 35.57%. TTM operating margin at 25.89% vs. industry average of 16.60%. TTM pretax margin at 20.09% vs. industry average of 17.01%. The stock has gained 37.53% over the last year.

5. Southern Company (SO): Electric Utilities Industry. Market cap of $33.01B. Dividend yield at 4.86%. TTM gross margin at 30.74% vs. industry average of 26.62%. TTM operating margin at 21.57% vs. industry average of 18.73%. TTM pretax margin at 17.26% vs. industry average of 15.49%. The stock has gained 17.76% over the last year.

6. DPL Inc. (DPL): Diversified Utilities Industry. Market cap of $3.56B. Dividend yield at 4.38%. TTM gross margin at 34.19% vs. industry average of 26.62%. TTM operating margin at 26.79% vs. industry average of 18.73%. TTM pretax margin at 23.01% vs. industry average of 15.49%. The stock is exhibiting strong upside momentum--currently trading 6.5% above its SMA20, 11.25% above its SMA50, and 16.75% above its SMA200. The stock has had a good month, gaining 11.95%.

7. F.N.B. Corporation (FNB): Regional Banks Industry. Market cap of $1.32B. Dividend yield at 4.36%. TTM gross margin at 73.97% vs. industry average of 68.82%. TTM operating margin at 39.44% vs. industry average of 37.60%. TTM pretax margin at 21.15% vs. industry average of 20.40%. The stock is a short squeeze candidate, with a short float at 10.35% (equivalent to 17.8 days of average volume). The stock has had a couple of great days, gaining 7.42% over the last week.

8. AGL Resources Inc. (AGL): Gas Utilities Industry. Market cap of $3.23B. Dividend yield at 4.35%. TTM gross margin at 28.07% vs. industry average of 24.61%. TTM operating margin at 21.32% vs. industry average of 15.44%. TTM pretax margin at 16.43% vs. industry average of 12.37%. The stock has a relatively low correlation to the market (beta = 0.46), which may be appealing to risk-averse investors. The stock has gained 9.64% over the last year.

9. TECO Energy, Inc. (TE): Electric Utilities Industry. Market cap of $4.11B. Dividend yield at 4.29%. TTM gross margin at 26.90% vs. industry average of 25.11%. TTM operating margin at 17.93% vs. industry average of 16.45%. TTM pretax margin at 11.74% vs. industry average of 11.57%. The stock has gained 18.75% over the last year.

10. Western Gas Partners LP (WES): Oil & Gas Pipelines Industry. Market cap of $2.57B. Dividend yield at 4.29%. TTM gross margin at 49.54% vs. industry average of 35.57%. TTM operating margin at 30.13% vs. industry average of 16.60%. TTM pretax margin at 29.33% vs. industry average of 17.01%. The stock has gained 63.55% over the last year.

11. Baytex Energy Corp. (BTE): Independent Oil & Gas Industry. Market cap of $7.08B. Dividend yield at 4.06%. TTM gross margin at 56.27% vs. industry average of 35.57%. TTM operating margin at 19.64% vs. industry average of 16.60%. TTM pretax margin at 18.24% vs. industry average of 17.01%. The stock has gained 94.06% over the last year.

12. TransCanada Corp. (TRP): Gas Utilities Industry. Market cap of $29.69B. Dividend yield at 4.05%. TTM gross margin at 48.78% vs. industry average of 36.17%. TTM operating margin at 31.99% vs. industry average of 17.09%. TTM pretax margin at 21.89% vs. industry average of 17.36%. The stock has a relatively low correlation to the market (beta = 0.77), which may be appealing to risk-averse investors. The stock has gained 24.96% over the last year.

*Profitability data sourced from Fidelity, dividend yield and 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.

Source: Momentum Trades: 12 Profitable, High Yield Stocks Hitting New 52-Week Highs