3 Undervalued, High Dividend Yield Stocks Being Bought Up By The Smart Money

Includes: DDIC, DEST, TSU
by: Kapitall

If you’re looking for stocks paying big dividend yields, you may be very interested in this list.

We ran a screen on stocks paying dividend yields above 4% and sustainable payout ratios below 50% for those that appear undervalued to earnings growth, with PEG below 1. We then screened for those that have also seen significant net institutional purchases over the current quarter.

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.

Do you agree with the smart money on these names? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield.

1. DDI Corp. (NASDAQ:DDIC): Provides printed circuit board (PCB) engineering and manufacturing services primarily in North America. Market cap of $154.43M. Dividend yield at 5.26%, payout ratio at 34.68%. PEG at 0.51. Net institutional shares purchased over the current quarter at 665.7K, which is 4.91% of the company's 13.56M share float. The stock has had a couple of great days, gaining 6.29% over the last week.

2. Destination Maternity Corporation (NASDAQ:DEST): Engages in the design and retail of maternity apparel. Market cap of $181.91M. Dividend yield at 5.09%, payout ratio at 28.01%. PEG at 0.61. Net institutional shares purchased over the current quarter at 1.1M, which is 11.21% of the company's 9.81M share float. The stock is a short squeeze candidate, with a short float at 5.6% (equivalent to 6.11 days of average volume). The stock has lost 5.69% over the last year.

3. TIM Participacoes S.A. (NYSE:TSU): Provides mobile telecommunications services through global system mobile (GSM) technology to business and individual customers in Brazil. Market cap of $6.78B. Dividend yield at 4.58%, payout ratio at 19.30%. PEG at 0.16. Net institutional shares purchased over the current quarter at 11.2M, which is 5.89% of the company's 190.01M share float. The stock is currently stuck in a downtrend, trading 6.52% below its SMA20, 27.63% below its SMA50, and 32.72% below its SMA200. The stock has lost 9.75% over the last year.

*Institutional data sourced from Fidelity, 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.