Do you prefer stocks that pay part of their return in dividend income? For a closer look at interesting dividend stocks, we ran a screen.
We began by screening for high dividend yield stocks, paying dividend yields above 4% and sustainable payout ratios below 50%. We then screened these names to find those with strong sales trends, with faster growth in revenue than inventory year-over-year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered a good sign.
To screen for healthy liquidity, we also only focused on those companies with inventory declining as a percent of current assets.
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 strong dividends? Use this list as a starting point for your own analysis.
List sorted by difference between growth in revenue and inventory over the last year.
1. ONEOK Partners, L.P. (OKS): Engages in the gathering, processing, storage, and transportation of natural gas in the United States. Market cap at $12.25B, most recent closing price at $55.72. Dividend yield at 4.56%, payout ratio at 44.57%. Revenue grew by 33.6% during the most recent quarter ($3,135.2M vs. $2,346.63M y/y). Inventory grew by -36.25% during the same time period ($202.19M vs. $317.16M y/y). Inventory, as a percentage of current assets, decreased from 24.8% to 15.48% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).
2. BP plc (BP): Provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products. Market cap at $132.99B, most recent closing price at $41.95. Dividend yield at 4.58%, payout ratio at 15.85%. Revenue grew by 14.71% during the most recent quarter ($96,343M vs. $83,988M y/y). Inventory grew by -2.12% during the same time period ($25,661M vs. $26,218M y/y). Inventory, as a percentage of current assets, decreased from 27.83% to 26.3% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).
3. Hasbro Inc. (HAS): Engages in the design, manufacture, and marketing of games and toys. Market cap at $4.42B, most recent closing price at $34.04. Dividend yield at 4.23%, payout ratio at 41.25%. Revenue grew by 3.96% during the most recent quarter ($1,329.34M vs. $1,278.7M y/y). Inventory grew by -8.29% during the same time period ($333.99M vs. $364.19M y/y). Inventory, as a percentage of current assets, decreased from 16.4% to 14.82% during the most recent quarter (comparing 13 weeks ending 2011-12-25 to 13 weeks ending 2010-12-26).
4. Statoil ASA (STO): Engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products. Market cap at $82.97B, most recent closing price at $26.02. Dividend yield at 4.31%, payout ratio at 25.25%. Revenue grew by 27.47% during the most recent quarter ($182,726M vs. $143,349M y/y). Inventory grew by 17.54% during the same time period ($27,770M vs. $23,627M y/y). Inventory, as a percentage of current assets, decreased from 16.01% to 14.02% 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.
