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Interested in stocks paying dividend income? Here are some ideas to help start you on your search.

We ran a screen on stocks paying dividend yields above 1% and sustainable payout ratios below 50%. We then screened for stocks with high liquidity, with current ratios above 3. Finally, we screened for those stocks with the highest net institutional purchases over the current quarter, indicating that institutional investors such as hedge funds believe these stocks will outperform.

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 point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. Sun Hydraulics Corp. (NASDAQ:SNHY): Designs and manufactures screw-in hydraulic cartridge valves and manifolds, components of fluid-power systems that control force, speed, and motion. Market cap of $699.22M. Dividend yield at 1.32%, payout ratio at 47.85%. Current ratio at 7.05. Net institutional shares purchased over the current quarter at 5.3M, which is 21.69% of the company's 24.43M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.1). The stock has had a couple of great days, gaining 5.86% over the last week.

2. Keynote Systems Inc. (NASDAQ:KEYN): Provides Internet and mobile cloud monitoring solutions worldwide. Market cap of $341.68M. Dividend yield at 1.22%, payout ratio at 7.66%. Current ratio at 4.58. Net institutional shares purchased over the current quarter at 1.1M, which is 8.46% of the company's 13.01M share float. The stock has gained 32.46% over the last year.

3. Janus Capital Group, Inc. (NYSE:JNS): A publicly owned asset management holding company. Market cap of $1.38B. Dividend yield at 2.70%, payout ratio at 10.75%. Current ratio at 5.86. Net institutional shares purchased over the current quarter at 10.3M, which is 5.73% of the company's 179.72M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.56). Might be undervalued at current levels, with a PEG ratio at 0.93, and P/FCF ratio at 5.86. The stock has had a couple of great days, gaining 7.09% over the last week.

4. Silver Wheaton Corp. (NYSE:SLW): Operates as a silver streaming company worldwide. Market cap of $11.14B. Dividend yield at 1.14%, payout ratio at 6.78%. Current ratio at 4.22. Net institutional shares purchased over the current quarter at 17.3M, which is 4.90% of the company's 352.72M share float. The stock has had a good month, gaining 11.46%.

5. j2 Global, Inc. (NASDAQ:JCOM): Provides outsourced, value-added communication, messaging, and data backup services to businesses of all sizes, from individuals to enterprises worldwide. Market cap of $1.32B. Dividend yield at 2.96%, payout ratio at 8.59%. Current ratio at 3.74. Net institutional shares purchased over the current quarter at 2.1M, which is 4.72% of the company's 44.53M share float. The stock is a short squeeze candidate, with a short float at 21.28% (equivalent to 22.94 days of average volume). The stock has lost 1.94% over the last year.

6. Advance America, Cash Advance Centers Inc. (NYSE:AEA): Provides cash advance services in the United States, the United Kingdom, and Canada. Market cap of $492.65M. Dividend yield at 3.17%, payout ratio at 27.68%. Current ratio at 5.0. Net institutional shares purchased over the current quarter at 2.4M, which is 4.50% of the company's 53.32M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.75). The stock is a short squeeze candidate, with a short float at 7.02% (equivalent to 7.07 days of average volume). It's been a rough couple of days for the stock, losing 5.51% over the last week.

7. CBOE Holdings, Inc. (NASDAQ:CBOE): Intends to operate as the holding company for Chicago Board Options Exchange, which operates as an organized marketplace for the trade of standardized, listed options on equity securities. Market cap of $2.30B. Dividend yield at 1.87%, payout ratio at 28.46%. Current ratio at 3.18. Net institutional shares purchased over the current quarter at 3.9M, which is 4.41% of the company's 88.36M share float. The stock has gained 13.31% over the last year.

8. Activision Blizzard, Inc. (NASDAQ:ATVI): Publishes online, personal computer (PC), console, handheld, and mobile games of interactive entertainment worldwide. Market cap of $13.98B. Dividend yield at 1.35%, payout ratio at 26.22%. Current ratio at 3.19. Net institutional shares purchased over the current quarter at 19.7M, which is 4.35% of the company's 453.28M share float. The stock has gained 7.48% over the last year.

9. Gentex Corp. (NASDAQ:GNTX): Designs, develops, manufactures, and markets electro-optical products to automotive, commercial building, and aircraft industries in the United States and internationally. Market cap of $4.43B. Dividend yield at 1.55%, payout ratio at 41.69%. Current ratio at 6.49. Net institutional shares purchased over the current quarter at 5.9M, which is 4.26% of the company's 138.58M share float. The stock has had a good month, gaining 14.7%.

10. 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 $2.65B. Dividend yield at 2.24%, payout ratio at 14.20%. Current ratio at 3.05. Net institutional shares purchased over the current quarter at 1.9M, which is 3.77% of the company's 50.37M share float. It's been a rough couple of days for the stock, losing 6.82% over the last week.

11. Badger Meter Inc. (NYSE:BMI): Engages in manufacturing and marketing liquid flow measurement and control technology products worldwide. Market cap of $493.82M. Dividend yield at 1.96%, payout ratio at 36.10%. Current ratio at 3.98. Net institutional shares purchased over the current quarter at 471.7K, which is 3.29% of the company's 14.35M share float. The stock is a short squeeze candidate, with a short float at 7.81% (equivalent to 9.88 days of average volume). The stock has had a good month, gaining 19.11%.

12. Bristow Group, Inc. (NYSE:BRS): Provides helicopter services to the offshore energy industry primarily in Europe, West Africa, North America, Australia, and internationally. Market cap of $1.72B. Dividend yield at 1.26%, payout ratio at 11.24%. Current ratio at 3.61. Net institutional shares purchased over the current quarter at 1.1M, which is 3.06% of the company's 35.98M share float. The stock is a short squeeze candidate, with a short float at 5.67% (equivalent to 7.95 days of average volume). The stock has had a couple of great days, gaining 5.8% over the last week.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 12 Highly Liquid Dividend Stocks Being Bought Up By Hedge Funds