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Even if a company is paying an attractive dividend yield, there is no guarantee that that dividend will be continued in the future. It is up to potential investors to analyze whether the company’s cash flows can continue to support the dividend yield.

We ran a screen on dividend stocks (paying yields above 2% and sustainable payout ratios below 35%) rallying above their 20-day, 50-day, and 200-day moving averages. We searched this universe for those that have trailing-twelve-month free cash flow per share at least five times greater than dividend per share, indicating comfortable coverage of the dividend.

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.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 (NYSEARCA:SPY) index over the last month.

(Click chart for more detail)

Do you think these companies pay a reliable dividend yield? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield.

1. Maiden Holdings, Ltd. (NASDAQ:MHLD): Property & Casualty Insurance Industry. Market cap of $680.72M. Dividend yield at 2.97%, payout ratio at 25.58%. TTM free cash flow per share at $2.04 vs. TTM dividend per share at $0.28. The stock is currently trading at 0.76% above its 20-Day SMA, 5.25% above its 50-Day SMA, and 18.77% above its 200-Day SMA. The stock has gained 47.5% over the last year.

2. Republic Bancorp Inc. (NASDAQ:RBCAA): Regional Banks Industry. Market cap of $448.33M. Dividend yield at 2.88%, payout ratio at 12.94%. TTM free cash flow per share at $6.62 vs. TTM dividend per share at $0.57. The stock is currently trading at 3.78% above its 20-Day SMA, 5.27% above its 50-Day SMA, and 4.03% above its 200-Day SMA. The stock is a short squeeze candidate, with a short float at 6.83% (equivalent to 14.64 days of average volume). The stock has had a couple of great days, gaining 5.73% over the last week.

3. Erie Indemnity Co. (NASDAQ:ERIE): Property & Casualty Insurance Industry. Market cap of $4.10B. Dividend yield at 2.79%, payout ratio at 30.84%. TTM free cash flow per share at $11.73 vs. TTM dividend per share at $1.99. The stock is currently trading at 3.87% above its 20-Day SMA, 5.17% above its 50-Day SMA, and 11.77% above its 200-Day SMA. The stock has had a good month, gaining 10.84%.

4. El Paso Electric Co. (NYSE:EE): Electric Utilities Industry. Market cap of $1.40B. Dividend yield at 2.65%, payout ratio at 10.81%. TTM free cash flow per share at $1.58 vs. TTM dividend per share at $0.22. The stock is currently trading at 0.32% above its 20-Day SMA, 4.95% above its 50-Day SMA, and 15.07% above its 200-Day SMA. The stock has had a good month, gaining 10.97%.

5. Safeway Inc. (NYSE:SWY): Grocery Stores Industry. Market cap of $8.56B. Dividend yield at 2.40%, payout ratio at 34.41%. TTM free cash flow per share at $2.74 vs. TTM dividend per share at $0.48. The stock is currently trading at 1.48% above its 20-Day SMA, 0.84% above its 50-Day SMA, and 5.37% above its 200-Day SMA. The stock is a short squeeze candidate, with a short float at 10.81% (equivalent to 8.08 days of average volume). The stock has gained 20.73% over the last year.

6. PH Glatfelter Co. (NYSE:GLT): Paper & Paper Products Industry. Market cap of $719.14M. Dividend yield at 2.30%, payout ratio at 22.89%. TTM free cash flow per share at $2.59 vs. TTM dividend per share at $0.36. The stock is currently trading at 1.16% above its 20-Day SMA, 4.58% above its 50-Day SMA, and 20.32% above its 200-Day SMA. The stock is a short squeeze candidate, with a short float at 7.69% (equivalent to 11.46 days of average volume). The stock has gained 38.84% over the last year.

7. U.S. Bancorp (NYSE:USB): Regional Banks Industry. Market cap of $48.22B. Dividend yield at 2.0%, payout ratio at 14.23%. TTM free cash flow per share at $4.22 vs. TTM dividend per share at $0.28. The stock is currently trading at 5.13% above its 20-Day SMA, 5.70% above its 50-Day SMA, and 3.19% above its 200-Day SMA. The stock has gained 9.64% over the last year.

*Free cash flow per share and dividend per share data sourced from Screener.co, all other data sourced from Finviz.

Source: 7 Rallying Dividend Stocks With Strong Cash Coverage