18 Highly Liquid Dividend Stocks With Impressive Profitability

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Includes: ADI, ALB, ASR, BMI, CASC-OLD, CSCO, GES, IEX, KLAC, MAT, MKTAY, MSM, PDCO, RES, SIAL, SJM, STJ, SYK
by: Kapitall

Do you like to be able to rely on a stock's dividend income? For ideas on how to evaluate this, we ran a screen.

Since company liquidity can help support a dividend when profits fall short, we began by running a screen on dividend stocks for those with strong liquidity, with current ratios above 3.

We then screened for those with high profitability as well, with higher gross, operating, and pretax margins than their industry peers.

Interactive Chart: Press Play to compare changes in market cap 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.

1. Analog Devices Inc. (NYSE:ADI): Engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications. Current ratio at 8.82.Dividend yield at 2.97%, payout ratio at 36.92%. TTM gross margin at 69.7% vs. industry average at 59.37%. TTM operating margin at 34.37% vs. industry average at 23.23%.TTM pretax margin at 33.74% vs. industry average at 22.16%.

2. Albemarle Corp. (NYSE:ALB): Develops, manufactures, and markets engineered specialty chemicals in the United States and internationally. Current ratio at 3.38.Dividend yield at 1.24%, payout ratio at 13.86%. TTM gross margin at 37.49% vs. industry average at 37.35%. TTM operating margin at 20.55% vs. industry average at 17.36%.TTM pretax margin at 20.72% vs. industry average at 16.49%.

3. Grupo Aeroportuario Del Sureste SA de CV (NYSE:ASR): Holds concessions to operate, maintain, and develop airports in the southeast region of Mexico. Current ratio at 3.03.Dividend yield at 3.56%, payout ratio at 48.36%. TTM gross margin at 56.1% vs. industry average at 47.35%. TTM operating margin at 44.06% vs. industry average at 28.42%.TTM pretax margin at 45.17% vs. industry average at 25.9%.

4. Badger Meter Inc. (NYSE:BMI): Engages in manufacturing and marketing liquid flow measurement and control technology products worldwide. Current ratio at 4.52.Dividend yield at 1.88%, payout ratio at 47.29%. TTM gross margin at 37.77% vs. industry average at 35.5%. TTM operating margin at 10.89% vs. industry average at 9.54%.TTM pretax margin at 10.4% vs. industry average at 9.96%.

5. Cascade Corp. (NYSE:CASC-OLD): Manufactures loading devices and replacement parts primarily for the lift-truck and construction industry. Current ratio at 3.67.Dividend yield at 1.75%, payout ratio at 15.47%. TTM gross margin at 33.16% vs. industry average at 32.06%. TTM operating margin at 14.94% vs. industry average at 13.53%.TTM pretax margin at 14.19% vs. industry average at 11.58%.

6. Cisco Systems, Inc. (NASDAQ:CSCO): Designs, manufactures, and sells Internet protocol-based networking and other products related to the communications and information technology industry worldwide. Current ratio at 3.37.Dividend yield at 1.54%, payout ratio at 18.61%. TTM gross margin at 66.07% vs. industry average at 59.57%. TTM operating margin at 21.66% vs. industry average at 19.16%.TTM pretax margin at 19.32% vs. industry average at 19.15%.

7. Guess? Inc. (NYSE:GES): Engages in the design, marketing, distribution, and licensing of apparel and accessories for men, women, and children. Current ratio at 3.Dividend yield at 2.49%, payout ratio at 28.08%. TTM gross margin at 43.72% vs. industry average at 37.65%. TTM operating margin at 11.55% vs. industry average at 10.07%.TTM pretax margin at 15.56% vs. industry average at 9.28%.

8. IDEX Corporation (NYSE:IEX): Engages in the manufacture and sale of an array of pumps, flow meters, other fluidics systems and components, and engineered products worldwide. Current ratio at 3.06.Dividend yield at 1.63%, payout ratio at 29.14%. TTM gross margin at 45.03% vs. industry average at 32.%. TTM operating margin at 18.32% vs. industry average at 13.51%.TTM pretax margin at 14.9% vs. industry average at 11.55%.

9. KLA-Tencor Corporation (NASDAQ:KLAC): Engages in the design, manufacture, and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries. Current ratio at 4.52.Dividend yield at 2.59%, payout ratio at 26.45%. TTM gross margin at 61.96% vs. industry average at 59.29%. TTM operating margin at 34.28% vs. industry average at 23.03%.TTM pretax margin at 32.53% vs. industry average at 21.92%.

10. Mattel Inc. (NASDAQ:MAT): Engages in the design, manufacture, and marketing of various toy products worldwide. Current ratio at 3.31.Dividend yield at 3.61%, payout ratio at 41.66%. TTM gross margin at 52.56% vs. industry average at 43.33%. TTM operating margin at 16.97% vs. industry average at 12.22%.TTM pretax margin at 15.49% vs. industry average at 10.49%.

11. Makita Corp. (NASDAQ:MKTAY): Manufactures and sells a range of electric power tools worldwide. It offers drills that are used to drill metals, woods, and plastics, which include pistol-grip drills, D-handle drills, spade-handle drills, and angle drills, as well as cordless drills and cordless driver drills; grinders comprising portable disc grinders and bench grinders used for smoothing and finishing on metal; sanders that include disc sanders, orbital sanders, and belt sanders for smoothing and finishing on metal, wood, stone, and concrete; and rotary hammers for the construction industry. Current ratio at 5.21.Dividend yield at 1.46%, payout ratio at 28.88%. TTM gross margin at 41.73% vs. industry average at 32.1%. TTM operating margin at 16.49% vs. industry average at 13.54%.TTM pretax margin at 15.9% vs. industry average at 11.6%.

12. MSC Industrial Direct Co. Inc. (NYSE:MSM): Operates as a direct marketer and distributor of metalworking and maintenance, repair, and operations products to industrial customers in the United States. Current ratio at 4.94.Dividend yield at 1.19%, payout ratio at 25.20%. TTM gross margin at 47.99% vs. industry average at 38.09%. TTM operating margin at 17.78% vs. industry average at 14.14%.TTM pretax margin at 17.62% vs. industry average at 13.05%.

13. Patterson Companies Inc. (NASDAQ:PDCO): Operates as a distributor serving the dental, companion-pet veterinarian, and rehabilitation supply markets in North America. Current ratio at 3.71.Dividend yield at 1.72%, payout ratio at 25.95%. TTM gross margin at 33.79% vs. industry average at 20.86%. TTM operating margin at 10.31% vs. industry average at 8.38%.TTM pretax margin at 9.6% vs. industry average at 6.83%.

14. RPC Inc. (NYSE:RES): Provides a range of oilfield services and equipment to the oil and gas companies primarily in the United States. Current ratio at 3.49.Dividend yield at 3.11%, payout ratio at 15.97%. TTM gross margin at 45.15% vs. industry average at 34.17%. TTM operating margin at 26.85% vs. industry average at 18.14%.TTM pretax margin at 26.46% vs. industry average at 13.41%.

15. Sigma-Aldrich Corporation (NASDAQ:SIAL): Develops, manufactures, purchases, and distributes a range of chemicals, biochemicals, and equipment worldwide. Current ratio at 3.33.Dividend yield at 1.08%, payout ratio at 19.12%. TTM gross margin at 57.09% vs. industry average at 37.43%. TTM operating margin at 26.15% vs. industry average at 17.42%.TTM pretax margin at 25.55% vs. industry average at 16.55%.

16. The J. M. Smucker Company (NYSE:SJM): Engages in the manufacture and marketing of branded food products in the United States and internationally. Current ratio at 3.65.Dividend yield at 2.39%, payout ratio at 48.00%. TTM gross margin at 36.97% vs. industry average at 32.28%. TTM operating margin at 16.54% vs. industry average at 11.65%.TTM pretax margin at 12.83% vs. industry average at 9.27%.

17. St. Jude Medical Inc. (NYSE:STJ): Develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. Current ratio at 3.19.Dividend yield at 2.10%, payout ratio at 32.93%. TTM gross margin at 79.34% vs. industry average at 65.49%. TTM operating margin at 24.97% vs. industry average at 13.88%.TTM pretax margin at 18.16% vs. industry average at 10.85%.

18. Stryker Corp. (NYSE:SYK): Operates as a medical technology company worldwide. Current ratio at 3.94.Dividend yield at 1.53%, payout ratio at 21.72%. TTM gross margin at 69.81% vs. industry average at 65.49%. TTM operating margin at 23.73% vs. industry average at 13.88%.TTM pretax margin at 20.3% vs. industry average at 10.85%.

*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.