3 Dividend Champs With Strong Cash Coverage And Increasing Short Interest

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 |  Includes: BANF, DE, FFIC
by: Kapitall

A very important consideration for dividend stocks is whether the company has sufficient cash flow growth to maintain its dividend yield. Comparing operating cash flow per share to dividend per share is one way to evaluate this.

We ran a screen on dividend champions, with 10-year dividend growth exceeding 10%, for those with strong cash coverage (comparing operating cash flow per share to dividend per share). We then screened for stocks seeing increases in shares shorted month-over-month.

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 think these stocks are candidates for short covering? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield.

1. Flushing Financial Corp. (NASDAQ:FFIC): Operates as the holding company of Flushing Savings Bank, FSB that provides banking products and services primarily to consumers and businesses. Market cap of $326.23M. Dividend yield at 4.97%, payout ratio at 39.56%. 10-year dividend growth rate at 11.19%. Total operating cash flow per share at $2.12 vs. TTM dividend per share at $0.52. Shares shorted have increased from 1.11M to 1.47M month-over-month, a change representing 1.24% of the company's 28.97M share float. It's been a rough couple of days for the stock, losing 6.25% over the last week.

2. BancFirst Corporation (NASDAQ:BANF): Operates as the holding company for BancFirst that provides commercial banking services to retail customers and small to medium-sized businesses in the non-metropolitan trade centers of Oklahoma and the metropolitan markets of Oklahoma City, Tulsa, Lawton, Muskogee, Norman, and Shawnee. Market cap of $476.88M. Dividend yield at 3.03%, payout ratio at 35.38%. 10-year dividend growth rate at 11.27%. Total operating cash flow per share at $13.37 vs. TTM dividend per share at $1.00. Shares shorted have increased from 345.14K to 415.35K month-over-month, a change representing 1.15% of the company's 6.12M share float. The stock is a short-squeeze candidate, with a short float at 5.72% (equivalent to 15.4 days of average volume). It's been a rough couple of days for the stock, losing 10.71% over the last week.

3. Deere & Company (NYSE:DE): Provides products and services primarily for agriculture and forestry worldwide. Market cap of $30.14B. Dividend yield at 2.16%, payout ratio at 22.91%. 10-year dividend growth rate at 10.18%. Total operating cash flow per share at $4.29 vs. TTM dividend per share at $1.41. Shares shorted have increased from 8.46M to 12.86M month-over-month, a change representing 1.13% of the company's 388.96M share float. The stock is currently stuck in a downtrend, trading 5.57% below its SMA20, 5.21% below its SMA50, and 14.35% below its SMA200. It's been a rough couple of days for the stock, losing 5.78% over the last week.

Dividend growth rate, dividend per share, and operating cash flow per share data sourced from Screener.co; short data sourced from Yahoo Finance; 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.