3 High Dividend Yield Stocks With Strong Receivable Trends

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Includes: BLC, NL, SUP
by: Kapitall

Do you like to be able to rely on a stock's dividend income? For ideas on how to start your own dividend stock search, we ran a screen.

We began by screening for stocks paying big dividend yields above 4% and sustainable payout ratios below 50%.

We then screened for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables the healthier the company's revenue.

We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

For an interactive version of this chart, click on the image below. Market cap data sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think these companies' strong sales trends will contribute to stable dividends? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. Superior Industries International, Inc. (NYSE:SUP): Designs, develops, manufactures, sells, and supplies cast aluminum road wheels to automobile and light truck manufacturers primarily in North America. Market cap at $429.87M, most recent closing price at $15.81. Dividend yield at 4.05%, payout ratio at 26.41%. Revenue grew by 6.82% during the most recent quarter ($202.46M vs. $189.53M y/y). Accounts receivable grew by 2.97% during the same time period ($129.13M vs. $125.41M y/y). Receivables, as a percentage of current assets, decreased from 31.42% to 31.11% during the most recent quarter (comparing 3 months ending 2012-03-25 to 3 months ending 2011-03-27).

2. Belo Corp. (NYSE:BLC): Operates as a television company. Market cap at $529.68M, most recent closing price at $5.62. Dividend yield at 5.69%, payout ratio at 31.57%. Revenue grew by 2.92% during the most recent quarter ($155.9M vs. $151.47M y/y). Accounts receivable grew by -18.75% during the same time period ($133.5M vs. $164.31M y/y). Receivables, as a percentage of current assets, decreased from 75.25% to 49.19% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. NL Industries Inc. (NYSE:NL): Operates in the component products industry in the United States, Canada, and Taiwan. Market cap at $589.27M, most recent closing price at $12.11. Dividend yield at 4.13%, payout ratio at 28.45%. Revenue grew by 2.16% during the most recent quarter ($35.53M vs. $34.78M y/y). Accounts receivable grew by -48.02% during the same time period ($16.5M vs. $31.74M y/y). Receivables, as a percentage of current assets, decreased from 41.4% to 30.65% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, 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.