Seeking Alpha
Long/short equity, deep value, value
Profile| Send Message|
( followers)

The Current Ratio is a liquidity metric that illustrates a firm’s ability to pay back short-term obligations. The higher this financial ratio the easier it is for a firm to handle its obligations. Now a ratio under 1 indicates that a firm cannot pay off all its obligations if they all came due at once. Although this is a red flag that should be reviewed further this doesn’t mean the firm is doomed for bankruptcy.

We ran a screen for dividend stocks that have underperformed the S&P 500 over the last 3-Months. From this narrowed pool we then screened for firms have a Current Ratio of 7 or higher.

The 3-Month Return ranks the firms from low to high by performance:

1. Ryland Group, Inc. (NYSE:RYL)

Sector

Consumer Cyclical

Industry

Residential Construction

Market Cap

$445 million

Beta

1.23

The company does mortgage financing and home-building. The firm has fallen 39.11% over the last 3 months. RYL’s Current Ratio is 7.04. The firm’s Dividend Yield is 1.20%. The short interest was 18.00% as of 08/15/2011.

2. CNinsure, Inc. (NASDAQ:CISG)

Sector

Financial Services

Industry

Insurance Brokers

Market Cap

$524 million

Beta

1.27

The firm has fallen 33.63% over the last 3 months. CISG’s Current Ratio is 12.44. The firm’s Dividend Yield is 2.32%. The short interest was N/A as of 08/15/2011.

3. M.D.C. Holdings, Inc. (NYSE:MDC)

Sector

Consumer Cyclical

Industry

Residential Construction

Market Cap

$837 million

Beta

1.04

The company does home-building and financial services. The firm has fallen 28.24% over the last 3 months. MDC’s Current Ratio is 9.51. The firm’s Dividend Yield is 5.68%. The short interest was N/A as of 08/15/2011.

4. Nordic American Tankers Ltd (NYSE:NAT)

Sector

Industrials

Industry

Shipping & Ports

Market Cap

$791 million

Beta

0.73

The company is an international tanker firm. The firm has fallen 23.45% over the last 3 months. NAT’s Current Ratio is 7.44. The firm’s Dividend Yield is 6.57%. The short interest was 9.80% as of 08/15/2011.

5. Analog Devices Inc (NASDAQ:ADI)

Sector

Technology

Industry

Semiconductors

Market Cap

$9,615 million

Beta

1.05

The company designs and sells a variety of high-performance signal integrated circuits. The firm has fallen 15.82% over the last 3 months. ADI’s Current Ratio is 7.80. The firm’s Dividend Yield is 2.93%. The short interest was 3.10% as of 08/15/2011.

6. Scripps Networks Interactive (NYSE:SNI)

Sector

Consumer Cyclical

Industry

Media – Diversified

Market Cap

$6,556 million

Beta

1.15

The firm has fallen 12.53% over the last 3 months. SNI’s Current Ratio is 8.04. The firm’s Dividend Yield is 0.86%. The short interest was N/A as of 08/15/2011.

7. Fly Leasing Ltd. (NYSE:FLY)

Sector

Industrials

Industry

Rental & Leasing Services

Market Cap

$295 million

Beta

1.94

The company acquires and leases global aircraft. The firm has fallen 11.69% in the last 3 months. FLY’s Current Ratio is 6.6. The firm’s Dividend Yield is 6.6%. The short interest was N/A as of 08/15/2011.

8. Linear Technology (NASDAQ:LLTC)

Sector

Technology

Industry

Semiconductors

Market Cap

$6,411 million

Beta

0.98

The company designs and manufactures linear integrated circuits. The firm has fallen 11.62 over the last 3 months. LLTC’s Current Ratio is 7.24. The firm’s Dividend Yield is 3.38%. The short interest was 6.70% as of 08/15/2011.

9. MKS Instruments, Inc. (NASDAQ:MKSI)

Sector

Industrials

Industry

Diversified Industrials

Market Cap

$1,177 million

Beta

2.01

The company sells a variety of instruments and subsystems that monitor critical parameters related to advanced manufacturing. The firm has fallen 8.36% over the last 3 months. MKSI’s Current Ratio is 8.33. The firm’s Dividend Yield is 5.30%. The short interest was #as of 08/15/2011.

10. Spectra Energy Partners, LP (NYSE:SEP)

Sector

Energy

Industry

Oil & Gas Midstream

Market Cap

$2,726 million

Beta

0.12

The company transports natural gas and storage assets. The firm has fallen 6.67% over the last 3 months. SEP’s Current Ratio is 7.34.The firm’s Dividend Yield is 6.41%. The short interest was N/A as of 08/15/2011.

We hope this list helps as investors do their own due diligence on dividend paying stocks.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.