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Do you prefer stocks that pay handsome dividend income? For a closer look at some interesting dividend names, we ran a screen.

We began by screening for dividend stocks (those with dividend yields above 2% and sustainable payout ratios below 50%) with strong liquidity, with current ratios above 3. The current ratio is current assets/current liabilities, so ratios above 3 indicate the company has at least 3 times the liquid assets to cover their short-term liabilities.

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.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

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

List sorted by difference between pretax margin and industry average.

1. j2 Global, Inc. (NASDAQ:JCOM): Provides outsourced, value-added communication, messaging, and data backup services to businesses of all sizes, from individuals to enterprises worldwide. Market cap at $1.12B, most recent closing price at $24.19. Dividend yield at 3.56%, payout ratio at 26.32%. Current ratio at 3.31. TTM gross margin at 86.92% vs. industry average at 72.19%. TTM operating margin at 43.93% vs. industry average at 24.48%. TTM pretax margin at 44.05% vs. industry average at 23.53%.

2. Kronos Worldwide Inc. (NYSE:KRO): Engages in the production and marketing of titanium dioxide pigments in North America and Europe. Market cap at $1.86B, most recent closing price at $16.07. Dividend yield at 3.73%, payout ratio at 17.51%. Current ratio at 3.43. TTM gross margin at 43.72% vs. industry average at 37.36%. TTM operating margin at 31.4% vs. industry average at 16.98%. TTM pretax margin at 30.29% vs. industry average at 15.8%.

3. Analog Devices Inc. (NASDAQ: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. Market cap at $10.64B, most recent closing price at $35.68. Dividend yield at 3.36%, payout ratio at 44.39%. Current ratio at 8.1. TTM gross margin at 69.13% vs. industry average at 60.37%. TTM operating margin at 32.74% vs. industry average at 22.3%. TTM pretax margin at 32.08% vs. industry average at 20.61%.

4. Tiffany & Co. (NYSE:TIF): Engages in the design, manufacture, and retail of fine jewelry worldwide. Market cap at $6.91B, most recent closing price at $54.70. Dividend yield at 2.34%, payout ratio at 33.58%. Current ratio at 4.3. TTM gross margin at 62.82% vs. industry average at 37.72%. TTM operating margin at 20.05% vs. industry average at 10.55%. TTM pretax margin at 17.93% vs. industry average at 9.84%.

5. Xilinx Inc. (NASDAQ:XLNX): Designs, develops, and markets programmable platforms in North America, the Asia Pacific, Europe, and Japan. Market cap at $8.19B, most recent closing price at $31.04. Dividend yield at 2.84%, payout ratio at 37.70%. Current ratio at 7.15. TTM gross margin at 67.4% vs. industry average at 60.37%. TTM operating margin at 28.85% vs. industry average at 22.3%. TTM pretax margin at 26.65% vs. industry average at 20.61%.

*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.

Source: 5 Highly Liquid Dividend Stocks With Strong Profitability