One very important consideration for dividend stocks is whether the company has strong enough cash flows to cover their dividend several times over – after all, dividends are paid in cash, and there is no guarantee that a company will maintain its dividend yield into the future.
We ran a screen on dividend stocks with at least three times trailing-twelve-month operating cash flow per share compared to the dividend over the same period. We screened these stocks for those with significant net insider buying over the last six months.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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.
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Do you think these stocks pay reliable dividend yields? Use this list as a starting point for your own analysis.
List sorted by dividend yield.
1. PH Glatfelter Co. (GLT): Manufactures and sells specialty papers and fiber-based engineered materials in the United States and internationally. Market cap of $624.08M. Dividend yield at 2.57%, payout ratio at 22.18%. TTM operating cash flow per share at $2.88 vs. TTM dividend per share at $1.08. Net insider shares purchased over the last six months at 31.0K, which is 0.07% of the company's 45.22M share float. Might be undervalued at current levels, with a PEG ratio at 0.93, and P/FCF ratio at 9.19. The stock is a short squeeze candidate, with a short float at 7.98% (equivalent to 12.04 days of average volume). The stock has gained 25.81% over the last year.
2. Motorola Solutions, Inc. (MSI): Provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap of $14.23B. Dividend yield at 2.12%, payout ratio at 11.85%. TTM operating cash flow per share at $4.69 vs. TTM dividend per share at $0.66. Net insider shares purchased over the last six months at 17.60M, which is 6.30% of the company's 279.46M share float. The stock has gained 26.87% over the last year.
3. UMB Financial Corporation (UMBF): Provides banking and other financial services in the United States. Market cap of $1.46B. Dividend yield at 2.11%, payout ratio at 31.48%. TTM operating cash flow per share at $5.13 vs. TTM dividend per share at $2.31. Net insider shares purchased over the last six months at 15.41K, which is 0.05% of the company's 32.20M share float. The stock is a short squeeze candidate, with a short float at 6.36% (equivalent to 11.96 days of average volume). It has been a rough couple of days for the stock, losing 6.61% over the last week.
*Operating cash flow per share and dividend per share data sourced from Screener.co, insider data sourced from Yahoo! Finance, 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.