12 Dividend Stocks With Strong Cash Flow Coverage, Bullish Options Sentiment

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 |  Includes: ALV, BCS, CCL, CUK, GD, GPS, ISCA, KT, LNCR, MDP, PL, SEIC
by: Kapitall

When evaluating dividend stocks, it is important to check that companies have sufficient amounts of operating cash flow to cover their dividend payments.

We ran a screen on dividend stocks (paying dividend yields above 2% and sustainable payout ratios below 35%) for those that have at least three times the trailing-twelve-month operating cash flow per share compared to their dividend per share over the same period. We then screened for those seeing bullish changes in sentiment, as indicated by decreases in put/call ratio over the last ten trading days.

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 index over the last month. To access a complete analysis of this list's recent performance, click here.

click on image to enlarge

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

List sorted by dividend yield.

  1. KT Corp. (NYSE:KT): Telecom Services Industry. Market cap of $8.12B. Dividend yield at 5.93%, payout ratio at 31.01%. TTM operating cash flow per share at $7.15 vs. TTM dividend per share at $0.92. Put/call ratio has decreased 51.18% over the last ten trading days (from 1.70 to 0.83). It's been a rough couple of days for the stock, losing 18.04% over the last week.
  2. Meredith Corp. (NYSE:MDP): Publishing Industry. Market cap of $1.15B. Dividend yield at 4.06%, payout ratio at 27.05%. TTM operating cash flow per share at $4.68 vs. TTM dividend per share at $0.97. Put/call ratio has decreased 34.29% over the last ten trading days (from 0.70 to 0.46). The stock is a short squeeze candidate, with a short float at 32.04% (equivalent to 13.3 days of average volume). It's been a rough couple of days for the stock, losing 6.6% over the last week.
  3. Lincare Holdings Inc. (NASDAQ:LNCR): Home Health Care Industry. Market cap of $1.99B. Dividend yield at 3.76%, payout ratio at 31.48%. TTM operating cash flow per share at $3.66 vs. TTM dividend per share at $0.60. Put/call ratio has decreased 46.81% over the last ten trading days (from 0.47 to 0.25). Might be undervalued at current levels, with a PEG ratio at 0.72, and P/FCF ratio at 11.09. The stock is a short squeeze candidate, with a short float at 11.46% (equivalent to 7.81 days of average volume). It's been a rough couple of days for the stock, losing 8.3% over the last week.
  4. Protective Life Corp. (NYSE:PL): Life Insurance Industry. Market cap of $1.72B. Dividend yield at 3.49%, payout ratio at 16.05%. TTM operating cash flow per share at $7.09 vs. TTM dividend per share at $0.58. Put/call ratio has decreased 56.49% over the last ten trading days (from 4.78 to 2.08). This is a risky stock that is significantly more volatile than the overall market (beta = 2.96). Might be undervalued at current levels, with a PEG ratio at 0.65, and P/FCF ratio at 5. It's been a rough couple of days for the stock, losing 5.26% over the last week.
  5. Carnival plc (NYSE:CUK): General Entertainment Industry. Market cap of $24.03B. Dividend yield at 3.30%, payout ratio at 6.73%. TTM operating cash flow per share at $4.79 vs. TTM dividend per share at $0.70. Put/call ratio has decreased 38.93% over the last ten trading days (from 4.47 to 2.73). The stock has performed poorly over the last month, losing 17.23%.
  6. Autoliv, Inc. (NYSE:ALV): Auto Parts Industry. Market cap of $4.88B. Dividend yield at 3.30%, payout ratio at 22.54%. TTM operating cash flow per share at $8.52 vs. TTM dividend per share at $1.63. Put/call ratio has decreased 23.88% over the last ten trading days (from 2.01 to 1.53). The stock has performed poorly over the last month, losing 22.6%.
  7. Carnival Corporation (NYSE:CCL): General Entertainment Industry. Market cap of $24.40B. Dividend yield at 3.25%, payout ratio at 29.02%. TTM operating cash flow per share at $4.77 vs. TTM dividend per share at $0.70. Put/call ratio has decreased 20.43% over the last ten trading days (from 0.93 to 0.74). The stock has performed poorly over the last month, losing 14.41%.
  8. General Dynamics Corp. (NYSE:GD): Aerospace/Defense Products & Services Industry. Market cap of $22.25B. Dividend yield at 3.06%, payout ratio at 24.79%. TTM operating cash flow per share at $8.94 vs. TTM dividend per share at $1.78. Put/call ratio has decreased 27.08% over the last ten trading days (from 0.96 to 0.70). The stock has performed poorly over the last month, losing 15.33%.
  9. International Speedway Corp. (NASDAQ:ISCA): Sporting Activities Industry. Market cap of $1.14B. Dividend yield at 3.02%, payout ratio at 16.46%. TTM operating cash flow per share at $2.92 vs. TTM dividend per share at $0.18. Put/call ratio has decreased 22.03% over the last ten trading days (from 0.59 to 0.46). The stock is a short squeeze candidate, with a short float at 6.29% (equivalent to 8.35 days of average volume). The stock has performed poorly over the last month, losing 19.72%.
  10. Gap Inc. (NYSE:GPS): Apparel Stores Industry. Market cap of $8.97B. Dividend yield at 2.77%, payout ratio at 21.80%. TTM operating cash flow per share at $2.66 vs. TTM dividend per share at $0.41. Put/call ratio has decreased 28.47% over the last ten trading days (from 1.37 to 0.98). Might be undervalued at current levels, with a PEG ratio at 0.94, and P/FCF ratio at 10.97. The stock has performed poorly over the last month, losing 12.93%.
  11. SEI Investments Co. (NASDAQ:SEIC): Asset Management Industry. Market cap of $3.19B. Dividend yield at 2.75%, payout ratio at 10.24%. TTM operating cash flow per share at $1.40 vs. TTM dividend per share at $0.13. Put/call ratio has decreased 40.85% over the last ten trading days (from 0.71 to 0.42). The stock has performed poorly over the last month, losing 20.11%.
  12. Barclays PLC (NYSE:BCS): Foreign Money Center Banks Industry. Market cap of $36.54B. Dividend yield at 2.70%, payout ratio at 18.32%. TTM operating cash flow per share at $9.69 vs. TTM dividend per share at $0.36. Put/call ratio has decreased 34.48% over the last ten trading days (from 1.74 to 1.14). This is a risky stock that is significantly more volatile than the overall market (beta = 2.5). The stock has performed poorly over the last month, losing 17.93%.

*Dividend and operating cash flow data sourced from Screener.co, options data sourced from Schaeffers, 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.