6 High Dividend Yield Stocks with Bearish Short Trends

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 |  Includes: CTB, EAT, FFBC, FFIC, FFIN, KRO
by: Kapitall

Shares shorted is a very helpful tool to gauge the sentiment surrounding a stock – if a stock sees a significant increase in shares shorted, it indicates that the market is more bearish on the company’s outlook.

We ran a screen on stocks paying dividend yields above 3% and sustainable payout ratios below 50% for those seeing significant increases in shares shorted month-over-month, a bearish change in sentiment.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the six 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.


(Click to enlarge)

Do you agree with short sellers on these stocks? 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 $364.37M. Dividend yield at 4.43%, payout ratio at 39.56%. Shares shorted have increased from 1.47M to 1.59M month-over-month, a change representing 0.41% of the company's 28.97M share float. The stock is a short squeeze candidate, with a short float at 5.28% (equivalent to 13.6 days of average volume). The stock has had a couple of great days, gaining 13.22% over the last week.

2. Cooper Tire & Rubber Co. (NYSE:CTB): Manufactures and markets replacement tires in North America and internationally. Market cap of $722.84M. Dividend yield at 3.51%, payout ratio at 23.13%. Shares shorted have increased from 4.51M to 4.94M month-over-month, a change representing 0.74% of the company's 58.30M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.43). The stock has had a couple of great days, gaining 13.71% over the last week.

3. First Financial Bankshares Inc. (NASDAQ:FFIN): Provides commercial banking products and services primarily in Texas. Market cap of $878.71M. Dividend yield at 3.44%, payout ratio at 45.68%. Shares shorted have increased from 5.41M to 5.58M month-over-month, a change representing 0.58% of the company's 29.52M share float. The stock is a short squeeze candidate, with a short float at 18.74% (equivalent to 40.26 days of average volume). The stock has had a couple of great days, gaining 7.63% over the last week.

4. First Financial Bancorp. (NASDAQ:FFBC): Operates as the holding company for First Financial Bank, National Association that provides commercial banking, and other banking and banking-related services. Market cap of $875.65M. Dividend yield at 3.19%, payout ratio at 40.61%. Shares shorted have increased from 4.57M to 4.66M month-over-month, a change representing 1.66% of the company's 54.28M share float. The stock is a short squeeze candidate, with a short float at 8.08% (equivalent to 12.55 days of average volume). The stock has had a couple of great days, gaining 10.11% over the last week.

5. Kronos Worldwide Inc. (NYSE:KRO): Engages in the production and marketing of titanium dioxide pigments in North America and Europe. Market cap of $1.99B. Dividend yield at 3.16%, payout ratio at 47.89%. Shares shorted have increased from 1.86M to 2.12M month-over-month, a change representing 1.21% of the company's 21.51M share float. The stock is currently stuck in a downtrend, trading 7.42% below its SMA20, 20.16% below its SMA50, and 32.35% below its SMA200. The stock has performed poorly over the last month, losing 13.83%.

6. Brinker International Inc. (NYSE:EAT): Develops, operates, and franchises various restaurant brands primarily in the United States. Market cap of $1.73B. Dividend yield at 3.06%, payout ratio at 36.46%. Shares shorted have increased from 13.03M to 14.23M month-over-month, a change representing 1.47% of the company's 81.79M share float. The stock is a short squeeze candidate, with a short float at 17.39% (equivalent to 6.47 days of average volume). The stock has gained 12.36% over the last year.

*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.