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Stocks paying high dividend yields must be considered carefully, since some may actually be value traps. Because dividend yield equals dividend per share/price per share, the more the price falls the higher the yield rises. To watch out for potential dividend value traps, we ran a screen.

We screened high dividend yield stocks, paying yields above 4% and payout ratios below 50%, for those with red flags in their sales trends: slower growth in revenue than inventory year-over-year, as well as inventory increasing as a proportion of current assets over the same time period.

This indicates decreasing quality of sales as well as liquidity.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

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

1. Aixtron SE (AIXG): Engages in developing, producing, and installing deposition equipment for the semiconductor and compound-semiconductor industry. Market cap at $1.76B.Price at $17.39. Dividend yield at 4.85%, payout ratio at 31.94%. Revenue grew by -37.64% during the most recent quarter ($140.12M vs. $224.68M y/y). Inventory grew by 10.36% during the same time period ($184.55M vs. $167.22M y/y). Inventory, as a percentage of current assets, increased from 25.5% to 31.74% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

2. Deer Consumer Products, Inc. (OTC:DEER): Engages in the design, manufacture, and sale of small home and kitchen electronic appliances. Market cap at $140.41M. Price at $4.01. Dividend yield at 4.78%, payout ratio at 16.88%. Revenue grew by 18.83% during the most recent quarter ($73.95M vs. $62.23M y/y). Inventory grew by 165.07% during the same time period ($61.02M vs. $23.02M y/y). Inventory, as a percentage of current assets, increased from 19.65% to 55.71% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

3. Empire District Electric Co. (EDE): Primarily engages in the generation, purchase, transmission, distribution, and sale of electricity in Missouri, Kansas, Oklahoma, and Arkansas. Market cap at $862.09M. Price at $20.34. Dividend yield at 4.86%, payout ratio at 48.63%. Revenue grew by -0.04% during the most recent quarter ($132.76M vs. $132.81M y/y). Inventory grew by 36.61% during the same time period ($62.24M vs. $45.56M y/y). Inventory, as a percentage of current assets, increased from 28.27% to 35.92% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

4. Public Service Enterprise Group Inc. (PEG): Operates in the energy industry primarily in the northeastern and mid Atlantic United States. Market cap at $15.50B. Price at $30.22. Dividend yield at 4.64%, payout ratio at 49.25%. Revenue grew by -3.97% during the most recent quarter ($2,636M vs. $2,745M y/y). Inventory grew by 2.63% during the same time period ($1,052M vs. $1,025M y/y). Inventory, as a percentage of current assets, increased from 20.29% to 26.9% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

5. STMicroelectronics NV (STM): Engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. Market cap at $7.38B. Price at $7.80. Dividend yield at 4.94%, payout ratio at 36.53%. Revenue grew by -22.66% during the most recent quarter ($2,191M vs. $2,833M y/y). Inventory grew by 2.27% during the same time period ($1,531M vs. $1,497M y/y). Inventory, as a percentage of current assets, increased from 22.68% to 27.44% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 5 High Dividend Yield Stocks With Inventory Red Flags