If you're interested in stocks that pay dividend income, here are some ideas on how to start your stock search.
We ran a screen on stocks paying dividend yields above 2% and sustainable payout ratios below 50% for those trading within 3% of their 52-week highs. We then screened for those with the most significant net insider purchases over the last six months, indicating these insiders expect their employers to 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 insiders are calling it right on their employers? Use this list as a starting point for your own analysis.
1. Ames National Corporation (ATLO): Provides commercial banking services primarily within the central Iowa counties of Boone, Marshall, Polk, and Story. Dividend yield at 2.37%, payout ratio at 35.31%. The stock is currently trading 2.45% below its 52-week high. Over the last six months, insiders were net buyers of 13,762 shares, which represents about 0.16% of the company's 8.35M share float.
2. Bank of Kentucky Financial Corp. (BKYF): Operates as the holding company for The Bank of Kentucky that provides various financial product and solutions. Dividend yield at 2.20%, payout ratio at 26.82%. The stock is currently trading 0.94% below its 52-week high. Over the last six months, insiders were net buyers of 9,000 shares, which represents about 0.16% of the company's 5.52M share float.
3. Community Bank System Inc. (CBU): Operates as the holding company for Community Bank, N. Dividend yield at 3.65%, payout ratio at 49.57%. The stock is currently trading 2.56% below its 52-week high. 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.
4. DDI Corp. (DDIC): Provides printed circuit board engineering and manufacturing services primarily in North America. Dividend yield at 4.31%, payout ratio at 41.34%. The stock is currently trading 0.79% below its 52-week high. Over the last six months, insiders were net buyers of 122,531 shares, which represents about 0.91% of the company's 13.51M share float.
5. Evans Bancorp Inc. (EVBN): Operates as the holding company for Evans Bank, N. Dividend yield at 2.90%, payout ratio at 31.27%. The stock is currently trading 0.85% below its 52-week high. Over the last six months, insiders were net buyers of 7,989 shares, which represents about 0.24% of the company's 3.27M share float.
6. First Interstate Bancsystem Inc. (FIBK): Operates as the bank holding company for First Interstate Bank that provides commercial and consumer banking services. Dividend yield at 3.34%, payout ratio at 17.78%. The stock is currently trading 1.78% below its 52-week high. Over the last six months, insiders were net buyers of 24,726 shares, which represents about 0.19% of the company's 13.25M share float.
7. German American Bancorp Inc. (GABC): Operates as the holding company for German American Bancorp that offers retail and commercial banking, mortgage banking, and financial planning services primarily in southern Indiana. Dividend yield at 2.58%, payout ratio at 34.83%. The stock is currently trading 0.18% below its 52-week high. Over the last six months, insiders were net buyers of 13,984 shares, which represents about 0.12% of the company's 11.35M share float.
8. MidWest One Financial Group, Inc. (MOFG): Operates as the holding company for MidWestOne Bank that provides various banking product and services. Dividend yield at 2.00%, payout ratio at 15.26%. The stock is currently trading 0.00% below its 52-week high. Over the last six months, insiders were net buyers of 12,900 shares, which represents about 0.21% of the company's 6.05M share float.
9. Peoples Bancorp Inc. (PEBO): Operates as a holding company for Peoples Bank, National Association that provides financial products and services. Dividend yield at 2.57%, payout ratio at 28.07%. The stock is currently trading 1.56% below its 52-week high. Over the last six months, insiders were net buyers of 8,740 shares, which represents about 0.09% of the company's 9.83M share float.
10. A. Schulman, Inc. (SHLM): Dividend yield at 2.54%, payout ratio at 43.03%. The stock is currently trading 1.11% below its 52-week high. Over the last six months, insiders were net buyers of 21,666 shares, which represents about 0.08% of the company's 28.28M share float.
11. Teche Holding Company (TSH): Operates as the holding company for Teche Federal Bank that offers various financial services in Louisiana, the United States. Dividend yield at 3.96%, payout ratio at 41.72%. The stock is currently trading 1.03% below its 52-week high. Over the last six months, insiders were net buyers of 7,762 shares, which represents about 0.52% of the company's 1.49M share float.
12. West Bancorp., Inc. (WTBA): Operates as a bank holding company for West Bank that provides community banking and trust services primarily in the Des Moines and Iowa City, and Iowa metropolitan areas. Dividend yield at 3.07%, payout ratio at 22.97%. The stock is currently trading 2.01% below its 52-week high. Over the last six months, insiders were net buyers of 38,274 shares, which represents about 0.24% of the company's 16.26M share float.
*Insider 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.
