4 Insider Dividend Stock Picks With Impressive Profitability

Includes: CBU, FFIN, KRO, SPOK
by: Kapitall

Looking for interesting dividend ideas? We ran a screen with that in mind.

We screened for stocks paying dividend yields above 2% and sustainable payout ratios below 50%. We then screened for those with the highest net insider purchases over the last six months, indicating company insiders expect their employers to outperform.

Finally, we screened for those with higher gross, operating, and pretax margins than their industry peers, indicating high profitability.

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 these stocks pay reliable dividends? Use this list as a starting point for your own analysis.

1. Community Bank System Inc. (NYSE:CBU): Operates as the holding company for Community Bank, N. Dividend yield at 3.72%, payout ratio at 49.57%. TTM gross margin at 81.6% vs. industry average at 67.93%. TTM operating margin at 42.92% vs. industry average at 39.82%. TTM pretax margin at 28.74% vs. industry average at 21.13%. Over the last six months, insiders were net buyers of 14,630 shares, which represents about 0.04% of the company's 35.07M share float.

2. First Financial Bankshares Inc. (NASDAQ:FFIN): Provides commercial banking products and services primarily in Texas. Dividend yield at 2.76%, payout ratio at 43.44%. TTM gross margin at 93.07% vs. industry average at 71.25%. TTM operating margin at 56.95% vs. industry average at 40.62%. TTM pretax margin at 43.59% vs. industry average at 21.96%. Over the last six months, insiders were net buyers of 49,554 shares, which represents about 0.17% of the company's 29.83M share float.

3. Kronos Worldwide Inc. (NYSE:KRO): Engages in the production and marketing of titanium dioxide pigments in North America and Europe. Dividend yield at 2.52%, payout ratio at 44.81%. TTM gross margin at 37.51% vs. industry average at 37.22%. TTM operating margin at 24.9% vs. industry average at 17.28%. TTM pretax margin at 22.89% vs. industry average at 16.24%. Over the last six months, insiders were net buyers of 535,844 shares, which represents about 2.56% of the company's 20.92M share float.

4. USA Mobility, Inc. (USMO): Provides wireless communications solutions to the healthcare, government, enterprise, and emergency response sectors in the United States. Dividend yield at 6.78%, payout ratio at 40.33%. TTM gross margin at 66.92% vs. industry average at 60.62%. TTM operating margin at 28.7% vs. industry average at 21.4%. TTM pretax margin at 26.51% vs. industry average at 16.63%. Over the last six months, insiders were net buyers of 5,500 shares, which represents about 0.03% of the company's 18.58M share float.

*Insider data sourced from Yahoo Finance, 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.

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