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If you’re looking for sources of dividend income, you may find this list very interesting.

We ran a screen on stocks paying dividend yields above 4% for those with low debt (with total debt/equity below 0.3) and high profitability, beating their industry peers on gross, operating and pretax margins.

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. USA Mobility, Inc. (USMO): Provides wireless communications solutions to the healthcare, government, enterprise and emergency response sectors in the United States. Market cap of $322.22M. Dividend yield at 6.86%, payout ratio at 38.53%. Total debt/equity at 0.16. TTM gross margin at 67.53% vs. industry gross margin at 60.07%. TTM operating margin at 28.45% vs. industry operating margin at 21.51%. TTM pretax margin at 28.47% vs. industry pretax margin at 15.08%. The stock is a short squeeze candidate, with a short float at 8.92% (equivalent to 9.81 days of average volume). The stock has gained 3.92% over the last year.

2. OneBeacon Insurance Group, Ltd. (OB):
Provides specialty insurance products and services in the United States. Market cap of $1.23B. Dividend yield at 6.50%, payout ratio at 11.47%. Total debt/equity at 0.23. TTM gross margin at 17.96% vs. industry gross margin at 16.93%. TTM operating margin at 17.16% vs. industry operating margin at 13.59%. TTM pretax margin at 14.36% vs. industry pretax margin at 12.22%. The stock is a short squeeze candidate, with a short float at 5.72% (equivalent to 8.41 days of average volume). The stock has gained 2.13% over the last year.

3. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM):
Engages in the computer-aided designing, manufacturing, packaging, testing and selling integrated circuits and other semiconductor devices, and manufacturing masks. Market cap of $63.34B. Dividend yield at 4.24%, payout ratio at 48.60%. Total debt/equity at 0.07. TTM gross margin at 70.95% vs. industry gross margin at 61.08%. TTM operating margin at 36.91% vs. industry operating margin at 26.75%. TTM pretax margin at 39.22% vs. industry pretax margin at 26.64%. The stock has had a good month, gaining 10.59%.

4. Validus Holdings, Ltd. (VR): Provides reinsurance and insurance coverage in the property, marine and specialty lines markets worldwide. Market cap of $2.45B. Dividend yield at 4.04%, payout ratio at 47.94%. Total debt/equity at 0.16. TTM gross margin at 30.60% vs. industry gross margin at 16.91%. TTM operating margin at 17.33% vs. industry operating margin at 13.58%. TTM pretax margin at 14.86% vs. industry pretax margin at 12.21%. The stock has lost 2.48% over the last year.

5. Provident Financial Services, Inc. (PFS):
Operates as the holding company for The Provident Bank that provides banking services to individuals, families and businesses in New Jersey. Market cap of $724.92M. Dividend yield at 4.0%, payout ratio at 48.77%. Total debt/equity at 0. TTM gross margin at 67.77% vs. industry gross margin at 61.43%. TTM operating margin at 34.88% vs. industry operating margin at 33.27%. TTM pretax margin at 22.49% vs. industry pretax margin at 14.05%. The stock is a short squeeze candidate, with a short float at 6.97% (equivalent to 11.88 days of average volume). The stock has gained 0.08% over the last year.

*Profitability 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.

Source: 5 High Dividend Yield Stocks With Low Debt And Impressive Profitability