5 Highly Liquid Dividend Stocks With Bullish Short Trends

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 |  Includes: ADI, CALM, EPIQ, LANC, RGR
by: Kapitall

Liquidity is a very important consideration for dividend stocks. If a company’s profitability takes a temporary dip, sources of liquidity can bridge the gap so that the company can continue paying their dividend.

We ran a screen on dividend stocks paying dividend yields above 1% and sustainable payout ratios below 50%. We screened these stocks for those with high liquidity, with current ratios greater than 3. Finally, we screened for stocks that also had a significant decrease in shares shorted month-over-month, a bullish development.

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 think short sellers are right to be more optimistic on these names? Use this list as a starting point for your own analysis.

List sorted by decrease in shares shorted as a percent of share float.

1. Sturm, Ruger & Co. Inc. (NYSE:RGR): Engages in the design, manufacture, and sale of firearms in the United States. Market cap of $615.75M. Dividend yield at 1.33%, payout ratio at 19.69%. Current ratio at 3.25. Shares shorted have decreased from 2.18M to 1.80M month-over-month, a change representing 2.06% of the company's 18.45M share float. The stock is a short squeeze candidate, with a short float at 9.71% (equivalent to 5.93 days of average volume). The stock has had a good month, gaining 12.14%.

2. Lancaster Colony Corporation (NASDAQ:LANC): Engages in the manufacture and marketing of consumer products focusing primarily on specialty foods for the retail and foodservice markets in the United States. Market cap of $1.89B. Dividend yield at 1.90%, payout ratio at 34.58%. Current ratio at 4.26. Shares shorted have decreased from 2.71M to 2.48M month-over-month, a change representing 1.23% of the company's 18.75M share float. The stock is a short squeeze candidate, with a short float at 13.62% (equivalent to 20.43 days of average volume). The stock has had a good month, gaining 12.58%.

3. EPIQ Systems, Inc. (NASDAQ:EPIQ): Provides integrated technology solutions for the legal profession primarily in the United States. Market cap of $503.51M. Dividend yield at 1.42%, payout ratio at 41.67%. Current ratio at 7.58. Shares shorted have decreased from 1.69M to 1.37M month-over-month, a change representing 1.14% of the company's 28.07M share float. The stock has had a good month, gaining 10.68%.

4. Cal-Maine Foods, Inc. (NASDAQ:CALM): Engages in the production, grading, packaging, marketing, and distribution of shell eggs primarily in the southeastern, southwestern, mid-western, and mid-Atlantic regions of the United States. Market cap of $817.55M. Dividend yield at 2.42%, payout ratio at 33.38%. Current ratio at 3.28. Shares shorted have decreased from 2.77M to 2.62M month-over-month, a change representing 1.11% of the company's 13.50M share float. The stock is a short squeeze candidate, with a short float at 19.37% (equivalent to 22.23 days of average volume). The stock has gained 17.01% over the last year.

5. Analog Devices Inc. (NASDAQ:ADI): Engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications. Market cap of $10.98B. Dividend yield at 2.73%, payout ratio at 30.19%. Current ratio at 7.80. Shares shorted have decreased from 9.90M to 6.68M month-over-month, a change representing 1.10% of the company's 293.56M share float. The stock has gained 11.43% 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.