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Profitability is a very important consideration when looking for dividend stocks – a dividend yield can only be maintained if earnings are sufficient to justify the payout to shareholders. Companies with a strong profitability profile are more likely to keep paying out dividends.

We ran a screen on dividend stocks for those with strong profitability growth, comparing TTM EBITDA/common equity to the company’s five-year average. Because EBITDA (earnings before interest, taxes, depreciation, and amortization) does not take into account high interest payments, we controlled for low interest payments by screening for an increase in interest coverage year-over-year.

Finally, we screened for stocks that are technically oversold, with RSI(14) below 40.

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.)

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

List sorted by RSI(14).

1. Hewlett-Packard Company (NYSE:HPQ): Offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Market cap of $49.51B. RSI(14) at 27.01. Dividend yield at 4.03%, payout ratio at 25.85%. TTM EBITDA/common equity at 0.40 vs. 5-year average at 0.30. TTM interest coverage at 32.47 vs. prior TTM at 20.35. Might be undervalued at current levels, with a PEG ratio at 0.71, and P/FCF ratio at 6.02. It's been a rough couple of days for the stock, losing 8.3% over the last week.

2. Eastman Chemical Co. (NYSE:EMN): Engages in the manufacture and sale of chemicals, plastics, and fibers in the United States and internationally. Market cap of $5.30B. RSI(14) at 32.44. Dividend yield at 2.50%, payout ratio at 15.71%. TTM EBITDA/common equity at 0.66 vs. 5-year average at 0.48. TTM interest coverage at 12.19 vs. prior TTM at 6.78. The stock is currently stuck in a downtrend, trading 9.44% below its SMA20, 20.44% below its SMA50, and 22.13% below its SMA200. It's been a rough couple of days for the stock, losing 8.72% over the last week.

3. CSX Corp. (NYSE:CSX): Provides rail-based transportation services. Market cap of $22.12B. RSI(14) at 32.71. Dividend yield at 2.38%, payout ratio at 25.98%. TTM EBITDA/common equity at 0.50 vs. 5-year average at 0.40. TTM interest coverage at 6.13 vs. prior TTM at 4.71. The stock is currently stuck in a downtrend, trading 8.53% below its SMA20, 16.48% below its SMA50, and 17.91% below its SMA200. It's been a rough couple of days for the stock, losing 7.93% over the last week.

4. Brinker International Inc. (NYSE:EAT): Develops, operates, and franchises various restaurant brands primarily in the United States. Market cap of $1.74B. RSI(14) at 33.17. Dividend yield at 2.67%, payout ratio at 25.36%. TTM EBITDA/common equity at 0.57 vs. 5-year average at 0.45. TTM interest coverage at 7.26 vs. prior TTM at 5.42. The stock is a short squeeze candidate, with a short float at 13.26% (equivalent to 5.87 days of average volume). It's been a rough couple of days for the stock, losing 6.07% over the last week.

5. Tyco Electronics, Ltd. (NYSE:TEL): Provides engineered electronic components, network solutions, specialty products, and subsea telecommunication systems. Market cap of $12.68B. RSI(14) at 39.09. Dividend yield at 2.47%, payout ratio at 21.95%. TTM EBITDA/common equity at 0.31 vs. 5-year average at 0.09. TTM interest coverage at 12.19 vs. prior TTM at 9.56. The stock has gained 14.66% over the last year.

6. Kronos Worldwide Inc. (NYSE:KRO): Engages in the production and marketing of titanium dioxide pigments in North America and Europe. Market cap of $2.36B. RSI(14) at 39.34. Dividend yield at 2.95%, payout ratio at 19.55%. TTM EBITDA/common equity at 0.66 vs. 5-year average at 0.31. TTM interest coverage at 15.86 vs. prior TTM at 2.34. The stock is currently stuck in a downtrend, trading 5.86% below its SMA20, 22.85% below its SMA50, and 21.37% below its SMA200. It's been a rough couple of days for the stock, losing 6.12% over the last week.

7. Autoliv, Inc. (NYSE:ALV): Develops, manufactures, and supplies automotive safety systems to automotive industry. Market cap of $4.69B. RSI(14) at 39.46. Dividend yield at 3.44%, payout ratio at 27.71%. TTM EBITDA/common equity at 0.40 vs. 5-year average at 0.32. TTM interest coverage at 19.16 vs. prior TTM at 11.09. The stock is currently stuck in a downtrend, trading 5.2% below its SMA20, 18.06% below its SMA50, and 29.49% below its SMA200. It's been a rough couple of days for the stock, losing 5.89% over the last week.

8. Ryder System, Inc. (NYSE:R): Provides transportation and supply chain management solutions. Market cap of $2.27B. RSI(14) at 39.72. Dividend yield at 2.44%, payout ratio at 34.47%. TTM EBITDA/common equity at 1.15 vs. 5-year average at 0.81. TTM interest coverage at 2.73 vs. prior TTM at 2.12. It's been a rough couple of days for the stock, losing 5.9% over the last week.

EBITDA/common equity, interest coverage, and dividend data sourced from Screener.co; all other data sourced from Finviz.

Source: 8 Oversold Dividend Stocks With Strong, Growing Profits