Do you like to follow the buying trends of institutional investors such as hedge fund managers?
We ran a screen on stocks paying dividend yields above 4% and sustainable payout ratios below 50%. We then screened for those that smart money expects to outperform, with significant net institutional purchases 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.
Do you think these stocks are poised to outperform? Use this list as a starting point for your own analysis.
1. TIM Participacoes S.A. (TSU): Provides mobile telecommunications services through global system mobile technology to business and individual customers in Brazil. Dividend yield at 4.18%, payout ratio at 23.75%. Net institutional purchases in the current quarter at 11.7M shares, which represents about 10.21% of the company's float of 114.60M shares.
2. Brookfield Infrastructure Partners L.P. (BIP): Operates in the utilities, transport and energy, and timber sectors. Dividend yield at 5.05%, payout ratio at 31.99%. Net institutional purchases in the current quarter at 12.4M shares, which represents about 7.6% of the company's float of 163.06M shares.
3. Deluxe Corp. (DLX): Provides various personalized printed products, promotional products, and merchandising materials to small businesses and financial institutions in the United States, Canada, and Europe. Dividend yield at 4.05%, payout ratio at 35.42%. Net institutional purchases in the current quarter at 2.1M shares, which represents about 4.18% of the company's float of 50.21M shares.
*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.