6 Dividend Stocks Trading Near Highs With Strong Profitability

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 |  Includes: BOKF, CTBI, CVBF, IHG, NEE, OCFC
by: Kapitall

Do you prefer stocks that can offer both value and growth? For a closer look at dividend stocks with strong upward momentum, we ran a screen.

We began by screening for stocks paying dividend yields above 2% and sustainable payout ratios below 50% for those trading within 5% of their 52-week high, indicating upward momentum.

We then screened for those with strong profitability compared to industry peers, with higher gross, operating, and pretax margins than their industry averages by at least 5% on each margin. This indicates that these companies are taking a greater percentage of their revenues as profits, and they also have stronger control over their cost structures.

Interactive Chart: Press Play to compare changes in market cap over the last two years for six of 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 will break through to new highs? Use this list as a starting point for your own analysis.

List sorted by difference between pretax profit margin and industry average.

1. CVB Financial Corp. (NASDAQ:CVBF): Operates as a bank holding company for Citizens Business Bank that provides various retail banking and financial services to small to mid-sized businesses, high net-worth individuals, and professionals in the United States. Market cap at $1.2B, most recent closing price at $11.32. Dividend yield at 2.96%, payout ratio at 40.93%. The stock is currently trading 4.11% below its 52-week high. TTM gross margin at 88.92% vs. industry average at 77.22%. TTM operating margin at 58.01% vs. industry average at 40.42%.TTM pretax margin at 43.76% vs. industry average at 23.98%.

2. Intercontinental Hotels Group plc (NYSE:IHG): Owns, manages, franchises, and leases hotels and resorts. Market cap at $6.95B, most recent closing price at $23.28. Dividend yield at 2.30%, payout ratio at 34.57%. The stock is currently trading 3.90% below its 52-week high. TTM gross margin at 56.39% vs. industry average at 35.2%. TTM operating margin at 31.% vs. industry average at 18.59%. TTM pretax margin at 31.33% vs. industry average at 17.56%.

3. OceanFirst Financial Corp. (NASDAQ:OCFC): Operates as the holding company for OceanFirst Bank that provides community banking services to retail, government, and business customers primarily in Ocean, Monmouth, and Middlesex counties in New Jersey. Market cap at $270.11M, most recent closing price at $14.47. Dividend yield at 3.30%, payout ratio at 42.27%. The stock is currently trading 1.82% below its 52-week high. TTM gross margin at 77.65% vs. industry average at 64.32%. TTM operating margin at 42.54% vs. industry average at 35.17%.TTM pretax margin at 29.99% vs. industry average at 17.36%.

4. BOK Financial Corporation (NASDAQ:BOKF): Offers a range of financial products and services to commercial and industrial customers, and other financial institutions and consumers. Market cap at $3.94B, most recent closing price at $57.0. Dividend yield at 2.63%, payout ratio at 27.29%. The stock is currently trading 2.97% below its 52-week high. TTM gross margin at 92.8% vs. industry average at 77.22%. TTM operating margin at 53.78% vs. industry average at 40.42%.TTM pretax margin at 33.76% vs. industry average at 23.98%.

5. Community Trust Bancorp Inc. (NASDAQ:CTBI): Operates as the holding company for Community Trust Bank, Inc. Market cap at $512.49M, most recent closing price at $32.86. Dividend yield at 3.76%, payout ratio at 46.08%. The stock is currently trading 1.59% below its 52-week high. TTM gross margin at 82.36% vs. industry average at 77.22%. TTM operating margin at 50.53% vs. industry average at 40.42%.TTM pretax margin at 30.02% vs. industry average at 23.98%.

6. NextEra Energy, Inc. (NYSE:NEE): Engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. Market cap at $26.78B, most recent closing price at $63.90. Dividend yield at 3.74%, payout ratio at 44.60%. The stock is currently trading 0.79% below its 52-week high. TTM gross margin at 34.66% vs. industry average at 26.42%. TTM operating margin at 24.68% vs. industry average at 17.84%.TTM pretax margin at 18.19% vs. industry average at 12.85%.

*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.