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A company’s liquidity is an important consideration when choosing dividend stocks – in the event that a company’s profitability suffers a temporary dip, the company may use its sources of liquidity (such as cash reserves or inventory) to maintain its dividend yield. Therefore, companies with more liquidity are considered to have more sustainable dividend yields.

We ran a screen on dividend stocks seeing decreases in put/call ratio over the last two weeks (a bullish change in sentiment). We screened these companies for those seeing strong growth in liquidity, comparing the current assets 10-year compound annual growth rate (CAGR) with the 10-year CAGR of current liabilities.

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.

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


List sorted by decrease in put/call ratio.

1. KT Corp. (NYSE:KT): Telecom Services Industry. Market cap of $8.10B. Dividend yield at 5.92%, payout ratio at 31.01%. Current assets 10-year CAGR at 0.07 vs. current liabilities 10-year CAGR at 0.00. Put/call ratio has decreased 51.18% over the last ten trading days (from 1.70 to 0.83). The stock is currently stuck in a downtrend, trading 17.54% below its SMA20, 16.7% below its SMA50, and 21.27% below its SMA200. It's been a rough couple of days for the stock, losing 21.42% over the last week.

2. Timken Co. (NYSE:TKR): Machine Tools & Accessories Industry. Market cap of $3.47B. Dividend yield at 2.27%, payout ratio at 16.10%. Current assets 10-year CAGR at 0.10 vs. current liabilities 10-year CAGR at 0.02. Put/call ratio has decreased 50.0% over the last ten trading days (from 0.26 to 0.13). The stock is currently stuck in a downtrend, trading 12.69% below its SMA20, 18.46% below its SMA50, and 20.56% below its SMA200. It's been a rough couple of days for the stock, losing 15.83% over the last week.

3. Foot Locker, Inc. (NYSE:FL): Apparel Stores Industry. Market cap of $2.67B. Dividend yield at 3.82%, payout ratio at 26.93%. Current assets 10-year CAGR at 0.07 vs. current liabilities 10-year CAGR at -0.03. Put/call ratio has decreased 28.95% over the last ten trading days (from 0.38 to 0.27). The stock is currently stuck in a downtrend, trading 11.82% below its SMA20, 16.38% below its SMA50, and 6.12% below its SMA200. It's been a rough couple of days for the stock, losing 16.39% over the last week.

4. AZZ Incorporated (NYSE:AZZ): Industrial Electrical Equipment Industry. Market cap of $510.91M. Dividend yield at 2.46%, payout ratio at 33.13%. Current assets 10-year CAGR at 0.22 vs. current liabilities 10-year CAGR at 0.11. Put/call ratio has decreased 21.55% over the last ten trading days (from 1.16 to 0.91). It's been a rough couple of days for the stock, losing 15.96% over the last week.

5. Gap Inc. (NYSE:GPS): Apparel Stores Industry. Market cap of $8.55B. Dividend yield at 2.91%, payout ratio at 27.47%. Current assets 10-year CAGR at 0.04 vs. current liabilities 10-year CAGR at -0.03. Put/call ratio has decreased 16.0% over the last ten trading days (from 1.25 to 1.05). Might be undervalued at current levels, with a PEG ratio at 0.89, and P/FCF ratio at 10.45. It's been a rough couple of days for the stock, losing 19.16% over the last week.

6. ConocoPhillips (NYSE:COP): Major Integrated Oil & Gas Industry. Market cap of $86.10B. Dividend yield at 4.22%, payout ratio at 27.34%. Current assets 10-year CAGR at 0.30 vs. current liabilities 10-year CAGR at 0.23. Put/call ratio has decreased 13.64% over the last ten trading days (from 1.10 to 0.95). It's been a rough couple of days for the stock, losing 11.13% over the last week.

7. Xilinx Inc. (NASDAQ:XLNX): Semiconductor Industry. Market cap of $7.77B. Dividend yield at 2.60%, payout ratio at 32.69%. Current assets 10-year CAGR at 0.09 vs. current liabilities 10-year CAGR at 0.00. Put/call ratio has decreased 11.11% over the last ten trading days (from 1.80 to 1.60). The stock is a short squeeze candidate, with a short float at 8.9% (equivalent to 5.01 days of average volume). It's been a rough couple of days for the stock, losing 6.22% over the last week.

*Options data sourced from Schaeffer’s, current assets and liabilities CAGR data sourced from Screener.co, 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: 7 Dividend Stocks With High Liquidity Growth and Bullish Options Sentiment