Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

For ideas on how to find some of the most profitable companies paying solid dividend yields, we ran a screen you may find interesting.

We began with companies paying dividend yields above 3% and sustainable payout ratios below 50%. To control for value traps, we also searched for stocks that are rallying above their 20-day, 50-day, and 200-day moving averages.

Finally, we screened for those companies with 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 top 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.

Do you think these stocks pay attractive dividend yields? Use this list as a starting-off point for your own analysis.

List sorted by difference between gross margin and industry.

1. Kellogg Company (K): Manufactures and markets ready-to-eat cereal and convenience food products primarily in North America, Europe, Latin America, and the Asia Pacific. Market cap of $19.72B. Dividend yield at 3.16%, payout ratio at 48.06%. The stock is currently trading at 1.53% above its 20-Day SMA, 2.23% above its 50-Day SMA, and 1.76% above its 200-Day SMA. TTM gross margin at 45.34% vs. industry gross margin at 33.92%. TTM operating margin at 16.01% vs. industry operating margin at 12.35%. TTM pretax margin at 13.45% vs. industry pretax margin at 9.82%. The stock has gained 12.35% over the last year.

2. Cleco Corporation (CNL): Engages in the generation, transmission, distribution, and sale of electricity in Louisiana. Market cap of $2.15B. Dividend yield at 3.18%, payout ratio at 36.83%. The stock is currently trading at 2.06% above its 20-Day SMA, 2.18% above its 50-Day SMA, and 5.09% above its 200-Day SMA. TTM gross margin at 36.56% vs. industry gross margin at 27.36%. TTM operating margin at 26.16% vs. industry operating margin at 18.86%. TTM pretax margin at 23.38% vs. industry pretax margin at 14.37%. The stock is a short squeeze candidate, with a short float at 6.3% (equivalent to 5.53 days of average volume). The stock has gained 16.64% over the last year.

3. Campbell Soup Co. (CPB): Engages in the manufacture and marketing of branded convenience food products worldwide. Market cap of $10.73B. Dividend yield at 3.46%, payout ratio at 47.74%. The stock is currently trading at 3.44% above its 20-Day SMA, 6.64% above its 50-Day SMA, and 2.05% above its 200-Day SMA. TTM gross margin at 43.67% vs. industry gross margin at 33.92%. TTM operating margin at 17.55% vs. industry operating margin at 12.35%. TTM pretax margin at 15.13% vs. industry pretax margin at 9.82%. The stock has lost 4.4% over the last year.

4. Public Service Enterprise Group Inc. (PEG): Operates in the energy industry primarily in the northeastern and mid Atlantic United States. Market cap of $16.72B. Dividend yield at 4.15%, payout ratio at 42.80%. The stock is currently trading at 0.02% above its 20-Day SMA, 0.96% above its 50-Day SMA, and 4.20% above its 200-Day SMA. TTM gross margin at 34.34% vs. industry gross margin at 27.32%. TTM operating margin at 26.0% vs. industry operating margin at 18.26%. TTM pretax margin at 23.53% vs. industry pretax margin at 13.49%. The stock has gained 2.77% over the last year.

5. General Mills, Inc. (GIS): Manufactures and markets branded consumer foods worldwide. Market cap of $25.38B. Dividend yield at 3.09%, payout ratio at 43.05%. The stock is currently trading at 1.59% above its 20-Day SMA, 5.14% above its 50-Day SMA, and 7.27% above its 200-Day SMA. TTM gross margin at 41.87% vs. industry gross margin at 34.0%. TTM operating margin at 17.37% vs. industry operating margin at 12.38%. TTM pretax margin at 15.86% vs. industry pretax margin at 9.84%. The stock has gained 9.55% over the last year.

6. Intel Corporation (INTC): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap of $127.28B. Dividend yield at 3.47%, payout ratio at 29.97%. The stock is currently trading at 8.47% above its 20-Day SMA, 14.60% above its 50-Day SMA, and 13.96% above its 200-Day SMA. TTM gross margin at 74.42% vs. industry gross margin at 61.21%. TTM operating margin at 34.39% vs. industry operating margin at 27.01%. TTM pretax margin at 34.43% vs. industry pretax margin at 26.93%. The stock has gained 27.65% over the last year.

7. McDonald's Corp. (MCD): Operates as a foodservice retailer worldwide. Market cap of $92.47B. Dividend yield at 3.12%, payout ratio at 47.51%. The stock is currently trading at 1.78% above its 20-Day SMA, 2.04% above its 50-Day SMA, and 11.51% above its 200-Day SMA. TTM gross margin at 44.97% vs. industry gross margin at 37.23%. TTM operating margin at 30.44% vs. industry operating margin at 19.33%. TTM pretax margin at 29.27% vs. industry pretax margin at 17.84%. The stock has gained 19.32% over the last year.

8. Eli Lilly & Co. (LLY): Develops, manufactures, and sells pharmaceutical products worldwide. Market cap of $44.80B. Dividend yield at 5.06%, payout ratio at 47.91%. The stock is currently trading at 3.65% above its 20-Day SMA, 5.47% above its 50-Day SMA, and 8.17% above its 200-Day SMA. TTM gross margin at 86.43% vs. industry gross margin at 72.63%. TTM operating margin at 28.21% vs. industry operating margin at 20.86%. TTM pretax margin at 24.59% vs. industry pretax margin at 15.23%. The stock has gained 13.52% over the last year.

9. IdaCorp, Inc. (IDA): Engages in the generation, transmission, distribution, sale, and purchase of electric energy in the United States. Market cap of $1.96B. Dividend yield at 3.02%, payout ratio at 42.94%. The stock is currently trading at 2.85% above its 20-Day SMA, 5.59% above its 50-Day SMA, and 4.84% above its 200-Day SMA. TTM gross margin at 32.12% vs. industry gross margin at 27.36%. TTM operating margin at 20.67% vs. industry operating margin at 18.86%. TTM pretax margin at 14.95% vs. industry pretax margin at 14.37%. The stock has gained 11.24% over the last year.

10. NextEra Energy, Inc. (NEE): Engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. Market cap of $23.10B. Dividend yield at 4.02%, payout ratio at 48.28%. The stock is currently trading at 1.05% above its 20-Day SMA, 0.79% above its 50-Day SMA, and 0.49% above its 200-Day SMA. TTM gross margin at 31.11% vs. industry gross margin at 27.23%. TTM operating margin at 19.61% vs. industry operating margin at 18.77%. TTM pretax margin at 14.40% vs. industry pretax margin at 14.31%. The stock has gained 1.65% over the last year.

11. Entergy Corporation (ETR): Operates as an integrated energy company in the United States. Market cap of $11.92B. Dividend yield at 4.96%, payout ratio at 46.76%. The stock is currently trading at 1.89% above its 20-Day SMA, 4.15% above its 50-Day SMA, and 0.35% above its 200-Day SMA. TTM gross margin at 31.07% vs. industry gross margin at 27.23%. TTM operating margin at 19.54% vs. industry operating margin at 18.78%. TTM pretax margin at 16.83% vs. industry pretax margin at 14.31%. The stock has lost 8.81% over the last year.

12. Citizens & Northern Corp. (CZNC): Operates as the holding for Citizens & Northern Bank, which provides various banking and mortgage products and services to individual and corporate customers in north central Pennsylvania and southern New York. Market cap of $193.91M. Dividend yield at 3.99%, payout ratio at 29.40%. The stock is currently trading at 4.23% above its 20-Day SMA, 4.18% above its 50-Day SMA, and 3.55% above its 200-Day SMA. TTM gross margin at 80.11% vs. industry gross margin at 71.33%. TTM operating margin at 48.97% vs. industry operating margin at 39.22%. TTM pretax margin at 38.23% vs. industry pretax margin at 22.71%. The stock has gained 15.57% over the last year.

13. Community Bank System Inc. (CBU): Operates as the holding company for Community Bank, N. Market cap of $911.42M. Dividend yield at 4.20%, payout ratio at 49.12%. The stock is currently trading at 5.57% above its 20-Day SMA, 6.11% above its 50-Day SMA, and 2.94% above its 200-Day SMA. TTM gross margin at 80.17% vs. industry gross margin at 71.55%. TTM operating margin at 41.08% vs. industry operating margin at 39.53%. TTM pretax margin at 26.85% vs. industry pretax margin at 22.95%. The stock is a short squeeze candidate, with a short float at 12.65% (equivalent to 15.11 days of average volume). The stock has gained 9.41% over the last year.

14. OneBeacon Insurance Group, Ltd. (OB): Provides specialty insurance products and services in the United States. Market cap of $1.32B. Dividend yield at 6.05%, payout ratio at 11.47%. The stock is currently trading at 3.44% above its 20-Day SMA, 5.06% above its 50-Day SMA, and 8.98% above its 200-Day SMA. TTM gross margin at 17.96% vs. industry gross margin at 16.16%. TTM operating margin at 17.16% vs. industry operating margin at 13.09%. TTM pretax margin at 14.36% vs. industry pretax margin at 11.73%. The stock is a short squeeze candidate, with a short float at 5.27% (equivalent to 9.65 days of average volume). The stock has gained 12.57% over the last year.

15. KLA-Tencor Corporation (KLAC): Engages in the design, manufacture, and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries. Market cap of $7.20B. Dividend yield at 3.24%, payout ratio at 21.07%. The stock is currently trading at 6.60% above its 20-Day SMA, 13.97% above its 50-Day SMA, and 4.32% above its 200-Day SMA. TTM gross margin at 63.11% vs. industry gross margin at 61.21%. TTM operating margin at 36.90% vs. industry operating margin at 27.01%. TTM pretax margin at 34.96% vs. industry pretax margin at 26.93%. The stock has had a good month, gaining 12.76%.

16. Procter & Gamble Co. (PG): Provides consumer packaged goods in the United States and internationally. Market cap of $177.93B. Dividend yield at 3.24%, payout ratio at 47.47%. The stock is currently trading at 1.90% above its 20-Day SMA, 3.16% above its 50-Day SMA, and 2.76% above its 200-Day SMA. TTM gross margin at 54.06% vs. industry gross margin at 52.77%. TTM operating margin at 19.16% vs. industry operating margin at 19.10%. TTM pretax margin at 18.56% vs. industry pretax margin at 18.02%. The stock has gained 4.64% over the last year.

*Profitability data sourced from Fidelity, all other data sourced from Finviz. Data sourced Oct 19.

Source: 16 Rallying, High Dividend Yield Stocks With Impressive Profitability