20 Dividend Stocks With Impressive Profitability

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 |  Includes: CNL, CPB, DLX, DOV, HAS, HCC, HSY, IHG, JPM, K, KDN, LLTC, LSBG, MKC, MTSC, PEG, RES, SEE, SNA, SPGI
by: Kapitall

If you’re interested in exploring different income ideas, you may be interested in this list.

We ran a screen on stocks paying dividend yields above 2% and sustainable payout ratios below 50%. We screened these stocks for those 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 reliable dividends? Use this list as a starting-off point for your own analysis.

List sorted by difference between gross margin and industry.

1. Deluxe Corp. (NYSE:DLX): Provides various personalized printed products, promotional products, and merchandising materials to small businesses and financial institutions in the United States, Canada, and Europe. Market cap of $1.21B. Dividend yield at 4.23%, payout ratio at 36.90%. TTM gross margin at 70.65% vs. industry gross margin at 40.09%. TTM operating margin at 19.69% vs. industry operating margin at 13.91%. TTM pretax margin at 14.51% vs. industry pretax margin at 10.39%. The stock is a short squeeze candidate, with a short float at 9.85% (equivalent to 10.19 days of average volume). The stock has had a good month, gaining 26.99%.

2. Snap-on Inc. (NYSE:SNA): Manufactures and markets tools, diagnostics, equipment, software, and service solutions for professional users in the United States, the United Kingdom, Canada, Germany, Japan, France, Australia, Spain, the Netherlands, Italy, China, and Sweden. Market cap of $3.12B. Dividend yield at 2.38%, payout ratio at 22.65%. TTM gross margin at 51.72% vs. industry gross margin at 33.10%. TTM operating margin at 15.10% vs. industry operating margin at 12.89%. TTM pretax margin at 13.32% vs. industry pretax margin at 10.92%. The stock has had a good month, gaining 20.88%.

3. Intercontinental Hotels Group plc (NYSE:IHG): Owns, manages, franchises, and leases hotels and resorts. Market cap of $5.37B. Dividend yield at 2.77%, payout ratio at 48.05%. TTM gross margin at 55.33% vs. industry gross margin at 35.44%. TTM operating margin at 27.90% vs. industry operating margin at 18.62%. TTM pretax margin at 24.03% vs. industry pretax margin at 17.85%. The stock has had a couple of great days, gaining 9.74% over the last week.

4. The McGraw-Hill Companies, Inc. (MHP): Provides various information services for financial, educational, and business information markets worldwide. Market cap of $12.47B. Dividend yield at 2.35%, payout ratio at 34.87%. TTM gross margin at 61.84% vs. industry gross margin at 42.57%. TTM operating margin at 23.45% vs. industry operating margin at 16.59%. TTM pretax margin at 22.02% vs. industry pretax margin at 12.27%. The stock has gained 15.99% over the last year.

5. Cleco Corporation (NYSE:CNL): Engages in the generation, transmission, distribution, and sale of electricity in Louisiana. Market cap of $2.25B. Dividend yield at 3.04%, payout ratio at 36.83%. TTM gross margin at 36.56% vs. industry gross margin at 26.80%. TTM operating margin at 26.16% vs. industry operating margin at 18.58%. TTM pretax margin at 23.38% vs. industry pretax margin at 14.15%. The stock has gained 23.35% over the last year.

6. Kellogg Company (NYSE: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 $19.62B. Dividend yield at 3.17%, payout ratio at 48.06%. TTM gross margin at 45.34% vs. industry gross margin at 33.43%. TTM operating margin at 16.01% vs. industry operating margin at 12.15%. TTM pretax margin at 13.45% vs. industry pretax margin at 9.71%. The stock has gained 10.18% over the last year.

7. Hershey Co. (NYSE:HSY): Engages in manufacturing, marketing, selling, and distributing various chocolate and confectionery products, pantry items, and gum and mint refreshment products worldwide. Market cap of $12.91B. Dividend yield at 2.41%, payout ratio at 48.13%. TTM gross margin at 45.10% vs. industry gross margin at 33.43%. TTM operating margin at 17.78% vs. industry operating margin at 12.15%. TTM pretax margin at 15.93% vs. industry pretax margin at 9.71%. It's been a rough couple of days for the stock, losing 5.4% over the last week.

8. McCormick & Co. Inc. (NYSE:MKC): Engages in the manufacture, marketing, and distribution of flavor products and other specialty food products to the food industry worldwide. Market cap of $6.46B. Dividend yield at 2.31%, payout ratio at 39.63%. TTM gross margin at 44.52% vs. industry gross margin at 33.43%. TTM operating margin at 15.05% vs. industry operating margin at 12.15%. TTM pretax margin at 14.42% vs. industry pretax margin at 9.71%. The stock has gained 13.09% over the last year.

9. Hasbro Inc. (NASDAQ:HAS): Engages in the design, manufacture, and marketing of games and toys. Market cap of $5.11B. Dividend yield at 3.15%, payout ratio at 40.44%. TTM gross margin at 59.68% vs. industry gross margin at 45.03%. TTM operating margin at 13.97% vs. industry operating margin at 11.61%. TTM pretax margin at 11.11% vs. industry pretax margin at 9.57%. The stock has had a good month, gaining 17.61%.

10. Linear Technology Corp. (NASDAQ:LLTC): Designs, manufactures, and markets a line of linear integrated circuits. Market cap of $7.49B. Dividend yield at 2.97%, payout ratio at 39.28%. TTM gross margin at 80.22% vs. industry gross margin at 60.99%. TTM operating margin at 50.54% vs. industry operating margin at 26.56%. TTM pretax margin at 47.82% vs. industry pretax margin at 26.45%. The stock has had a good month, gaining 16.85%.

11. RPC Inc. (NYSE:RES): Provides a range of oilfield services and equipment to the oil and gas companies primarily in the United States. Market cap of $2.75B. Dividend yield at 2.15%, payout ratio at 13.60%. TTM gross margin at 45.71% vs. industry gross margin at 34.88%. TTM operating margin at 27.21% vs. industry operating margin at 18.52%. TTM pretax margin at 26.95% vs. industry pretax margin at 16.08%. The stock has had a good month, gaining 13.79%.

12. Campbell Soup Co. (NYSE:CPB): Engages in the manufacture and marketing of branded convenience food products worldwide. Market cap of $10.65B. Dividend yield at 3.49%, payout ratio at 47.74%. TTM gross margin at 43.67% vs. industry gross margin at 33.43%. TTM operating margin at 17.55% vs. industry operating margin at 12.15%. TTM pretax margin at 15.13% vs. industry pretax margin at 9.71%. The stock has lost 4.95% over the last year.

13. JPMorgan Chase & Co. (NYSE:JPM): Provides various financial services worldwide. Market cap of $135.53B. Dividend yield at 2.88%, payout ratio at 16.82%. TTM gross margin at 80.51% vs. industry gross margin at 62.23%. TTM operating margin at 48.59% vs. industry operating margin at 39.93%. TTM pretax margin at 25.0% vs. industry pretax margin at 19.26%. The stock has recently rebounded, and is currently trading 6.54% above its SMA20 and 5.64% above its SMA50. However, the stock still trades 13.42% below its SMA200. The stock has had a good month, gaining 16.41%.

14. New Hampshire Thrift Bancshares Inc. (NHTB): Operates as the holding company for Lake Sunapee Bank, fsb that provides banking and other financial services in New Hampshire and Vermont. Market cap of $65.60M. Dividend yield at 4.57%, payout ratio at 39.73%. TTM gross margin at 78.73% vs. industry gross margin at 61.27%. TTM operating margin at 37.66% vs. industry operating margin at 33.33%. TTM pretax margin at 23.59% vs. industry pretax margin at 11.92%. The stock has gained 0.62% over the last year.

15. MTS Systems Corp. (NASDAQ:MTSC): Supplies test systems and industrial position sensors in the Americas, Europe, and Asia. Market cap of $573.84M. Dividend yield at 2.73%, payout ratio at 25.96%. TTM gross margin at 46.32% vs. industry gross margin at 36.38%. TTM operating margin at 15.96% vs. industry operating margin at 9.38%. TTM pretax margin at 14.84% vs. industry pretax margin at 9.06%. The stock has had a good month, gaining 19.52%.

16. HCC Insurance Holdings Inc. (NYSE:HCC): Provides property and casualty, surety, group life, accident, and health insurance coverage, as well as related agency and reinsurance brokerage services to commercial customers and individuals worldwide. Market cap of $2.93B. Dividend yield at 2.33%, payout ratio at 21.83%. TTM gross margin at 20.27% vs. industry gross margin at 15.93%. TTM operating margin at 19.49% vs. industry operating margin at 12.29%. TTM pretax margin at 18.55% vs. industry pretax margin at 11.26%. It's been a rough couple of days for the stock, losing 11.86% over the last week.

17. Dover Corp. (NYSE:DOV): Manufactures and sells industrial products and components, and consumables. Market cap of $10.29B. Dividend yield at 2.27%, payout ratio at 25.25%. TTM gross margin at 41.88% vs. industry gross margin at 33.10%. TTM operating margin at 15.14% vs. industry operating margin at 12.89%. TTM pretax margin at 13.62% vs. industry pretax margin at 10.92%. Might be undervalued at current levels, with a PEG ratio at 0.91, and P/FCF ratio at 14.8. The stock has had a good month, gaining 19.16%.

18. Public Service Enterprise Group Inc. (NYSE:PEG): Operates in the energy industry primarily in the northeastern and mid Atlantic United States. Market cap of $17.05B. Dividend yield at 4.07%, payout ratio at 42.80%. TTM gross margin at 34.34% vs. industry gross margin at 27.23%. TTM operating margin at 26.0% vs. industry operating margin at 18.19%. TTM pretax margin at 23.53% vs. industry pretax margin at 13.17%. The stock has gained 9.31% over the last year.

19. Sealed Air Corporation (NYSE:SEE): Manufactures and sells packaging and performance-based materials and equipment systems worldwide. Market cap of $2.84B. Dividend yield at 2.92%, payout ratio at 33.84%. TTM gross margin at 29.35% vs. industry gross margin at 23.30%. TTM operating margin at 11.71% vs. industry operating margin at 10.05%. TTM pretax margin at 6.86% vs. industry pretax margin at 6.56%. The stock has lost 20.99% over the last year.

20. Kaydon Corporation (NYSE:KDN): Engages in the design, manufacture, and sale of custom engineered, and performance-critical products in the United States, Germany, and internationally. Market cap of $1.02B. Dividend yield at 2.54%, payout ratio at 48.62%. TTM gross margin at 41.67% vs. industry gross margin at 33.10%. TTM operating margin at 17.50% vs. industry operating margin at 12.89%. TTM pretax margin at 16.53% vs. industry pretax margin at 10.92%. The stock is a short squeeze candidate, with a short float at 6.88% (equivalent to 6.33 days of average volume). The stock has lost 7.74% 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.