Do you prefer stocks that pay part of their return in dividend income?
One of the most important considerations for dividend stocks is whether the company has sufficient cash to continue paying for operations in the event that profits take a temporary slump. Otherwise, the dividend may be first to go.
We screened for stocks paying dividend yields above 1% and sustainable payout ratios below 50% for those with high amounts of cash relative to their operating expenses.
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 companies pay reliable dividends? Use this list as a starting point for your own analysis.
1. TD AMERITRADE Holding Corporation (AMTD): Provides securities brokerage services and technology-based financial services to retail investors, traders, and independent registered investment advisors (RIA) in the United States. Dividend yield at 1.28%, payout ratio at 18.39%.MRQ cash and cash equivalents at $6.99B vs. operating expenses over the last year at $1.72B.
2. Barclays PLC (BCS): Provides various financial products and services in Europe, the United States, Africa, and Asia. Dividend yield at 3.17%, payout ratio at 24.33%.MRQ cash and cash equivalents at $170.76B vs. operating expenses over the last year at $46.06B.
3. Westamerica Bancorp. (WABC): Operates as the holding company for Westamerica Bank that provides various banking services to individual and corporate customers in northern and central California. Dividend yield at 3.13%, payout ratio at 46.98%.MRQ cash and cash equivalents at $530.05M vs. operating expenses over the last year at $136.06M.
*Data sourced from Screener.co.