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The goal for this screen is to look for dividend stocks with decent yields and some historical sustainability. We want stocks that pay dividends backed by revenue and earnings growth. The dividends themselves should have a steady growth rate.

Here are some of the criteria for the scan:

  • Market Cap > 1 billion
  • Dividend growth rate at least 5%
  • Dividend yield at least 4%
  • 5 Year earnings growth positive
  • 5 Year revenue growth positive
  • 1 Year earnings growth positive
  • 1 Year price change is positive
  • Analyst consensus is moderate – strong buy

*All data is based on the Bing Finance screener and the FINVIZ screener which may differ somewhat depending on the source.

Buy-rated Income Stocks

Ticker

Company

Industry

Country

Dividend Yield

CTL

CenturyLink, Inc.

Telecom Services - Domestic

USA

6.69%

ALE

ALLETE, Inc.

Diversified Utilities

USA

4.47%

CIG

Cia Energetica de Minas Gerais

Electric Utilities

Brazil

5.67%

TU

TELUS Corporation

Wireless Communications

Canada

4.36%

OKS

ONEOK Partners, L.P.

Oil & Gas Pipelines

USA

5.57%

MMP

Magellan Midstream Partners LP

Oil & Gas Pipelines

USA

5.28%

TEF

Telefonica, S.A.

Telecom Services - Foreign

Spain

8.14%

T

AT&T, Inc.

Telecom Services - Domestic

USA

5.48%

Let’s have a quick look at some highlights and some longer-term price issues. As reported by Bing Finance, the stocks with the highest 5 year (1 year) earnings growth rates are:

  • ALE – 33.74% 5 yr (23.4% 1 yr)
  • AT&T – 31.87% 5 yr (57.5% 1 yr)
  • CTL – 23.19% 5 yr (85.4% 1 yr)
  • TEF – 18.66% 5 yr (30.7% 1 yr)

Stocks with the highest 5 year revenue growth are AT&T (23.21%), CTL (23.22%), and OKS (65.26%). Stocks with low PE ratios are AT&T (9.2 PE), and TEF (7.6 PE).

  • What about price performance?

CTL is nicely above its long-term $40 support. ALE is directly at its $40 support. CIG is nicely trading 10% above its $18 support level. TU just broke above the $50 resistance which is positive. OKS has been trending upwards for the past 2 years with a small recent pullback. MMP is also pulling back after 2 year highs. TEF has a volatile relationship with the $26 mark and is below that multi-year high. T is climbing towards its $35 multi-year high, but has over 10% more to go to reach resistance.

Same Filters But Hold-Rated Stocks

I wanted to run a second filter that would include the same earnings and sales growth criteria, but a slackened hand as to analyst rating. This next list will have stocks with a hold rating.

Ticker

Company

Industry

Country

Dividend Yield

NRP

Natural Resource Partners LP

Industrial Metals & Minerals

USA

6.61%

WPZ

Williams Partners L.P.

Specialty Chemicals

USA

5.56%

O

Realty Income Corp.

REIT - Retail

USA

4.90%

AZN

AstraZeneca PLC

Drug Manufacturers - Major

United Kingdom

4.90%

PT

Portugal Telecom SGPS SA

Wireless Communications

Portugal

5.57%

AINV

Apollo Investment Corporation

Diversified Investments

USA

9.91%

HEP

Holly Energy Partners L.P

Oil & Gas Pipelines

USA

6.47%

DPM

DCP Midstream Partners LP

Oil & Gas Pipelines

USA

6.35%

BCE

BCE, Inc.

Telecom Services - Domestic

Canada

5.36%

SXL

Sunoco Logistics Partners L.P.

Oil & Gas Pipelines

USA

5.73%

NHI

National Health Investors Inc.

REIT - Healthcare Facilities

USA

5.26%

WR

Westar Energy, Inc.

Diversified Utilities

USA

4.63%

VTR

Ventas, Inc.

REIT - Healthcare Facilities

USA

4.19%

TCLP

TC Pipelines LP

Oil & Gas Pipelines

USA

6.52%

ARLP

Alliance Resource Partners LP

Industrial Metals & Minerals

USA

4.93%

SCCO

Southern Copper Corp.

Copper

USA

6.33%

TGP

Teekay LNG Partners LP

Shipping

Bermuda

7.09%

WBK

Westpac Banking Corporation

Foreign Money Center Banks

Australia

6.32%

BCA

CorpBanca S.A.

Foreign Regional Banks

Chile

6.90%

I encourage you to look at some very interesting bounces of support levels and breakouts from trading ranges found for these price charts.

Wrap-Up on High Yield Dividend Stocks
Always be sure to do your due diligence on any investment, and the above list of scanned stocks is no different. While the efficient market theory states that all stocks are fairly valued at all times - you need to be aware of the specific risks associated with the price-tag on each stock. No doubt as dividend investors you want lower risk for your returns.

In can be a dangerous game to buy high yielding dividend stocks. Problems can occur when a hiccup occurs and the company needs to have payout ratios that exceed profit if they are to show dividend growth. This may lead to an erosion of book value.

On the other hand, if a company has a decent flow of cash and maintains good growth rates in earnings and in sales, they have a higher chance of delivering dividend growth year after year. In the above list, you may also find some decent income stocks with low betas that deliver superior returns based on dividend yields and capital gains combined.

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

Source: 8 Buy Rated Income Stocks With Dividend Growth and 19 Currently on Hold