If you’re looking for income ideas, you may be very interested in this list.
We ran a screen on stocks in the S&P 500 for those that pay dividend yields above 2% and sustainable payout ratios below 50%. We screened these stocks for those seeing significant net institutional buying 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. MeadWestvaco Corporation (MWV): Provides packaging solutions to the healthcare, personal care and beauty, food, beverage, home and garden, tobacco, and commercial print industries worldwide. Market cap of $4.38B. Dividend yield at 3.90%, payout ratio at 49.05%. Net institutional shares purchased over the current quarter at 6.6M, which is 4.12% of the company's 160.12M share float. It's been a rough couple of days for the stock, losing 6.38% over the last week.
2. Medtronic, Inc. (NYSE:MDT): Manufactures and sells device-based medical therapies worldwide. Market cap of $35.65B. Dividend yield at 2.87%, payout ratio at 31.71%. Net institutional shares purchased over the current quarter at 79.2M, which is 7.54% of the company's 1.05B share float. The stock has gained 3.62% over the last year.
3. Motorola Solutions, Inc. (NYSE:MSI): Provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap of $14.34B. Dividend yield at 2.11%, payout ratio at 11.85%. Net institutional shares purchased over the current quarter at 37.9M, which is 13.56% of the company's 279.46M share float. It's been a rough couple of days for the stock, losing 6.05% over the last week.
*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.