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. (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. (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. (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 (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 (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 (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. (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 (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. (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 (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.
