If you’re looking for ideas on how to search for income-paying stocks, here’s an interesting starting point.
We ran a screen on stocks reporting their third quarter earnings next week for those paying dividend yields above 1% and sustainable payout ratios below 50%. We screened these stocks for those with 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.
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Do you think these companies will report strong earnings next week? Use this list as a starting point for your own analysis.
List sorted by net institutional shares purchased.
1. HollyFrontier Corporation (HFC): Operates as an independent petroleum refiner and marketer in the United States. Market cap of $6.63B. Dividend yield at 1.11%, payout ratio at 9.33%. Earnings to be announced on 11/08. Net institutional shares purchased over the current quarter at 21.9M, which is 21.4% of the company's 102.34M share float. The stock has had a good month, gaining 19.89%.
2. FXCM Inc. (FXCM): Provides online foreign exchange (FX) trading and related services to retail and institutional customers worldwide. Market cap of $202.72M. Dividend yield at 2.01%, payout ratio at 49.47%. Earnings to be announced on 11/07. Net institutional shares purchased over the current quarter at 1.4M, which is 9.80% of the company's 14.28M share float. The stock is a short squeeze candidate, with a short float at 28.54% (equivalent to 16.38 days of average volume). The stock has performed poorly over the last month, losing 12.7%.
3. Communications Systems Inc. (JCS): Manufactures and sells modular connecting and wiring devices, and media and rate conversion products. Market cap of $130.92M. Dividend yield at 3.74%, payout ratio at 40.17%. Earnings to be announced on 11/10. Net institutional shares purchased over the current quarter at 460.4K, which is 7.98% of the company's 5.77M share float. The stock is a short squeeze candidate, with a short float at 5.23% (equivalent to 8.5 days of average volume). The stock has had a good month, gaining 13.03%.
*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.