Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

Do you prefer stocks that pay reliable dividends? For a closer look at some interesting dividend-yielding names, we ran a screen.

We began by screening for stocks paying dividend yields above 2% and sustainable payout ratios below 50%. We then screened for those that also appear undervalued relative to earnings growth, with PEG below 1.

Finally, we 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. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think these stocks pay handsome dividend income? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. Cenovus Energy Inc. (CVE): Engages in the development, production, and marketing of bitumen, crude oil, natural gas, and natural gas liquids in Canada with refining operations in the United States. Market cap at $24.18B, most recent closing price at $31.46. Dividend yield at 2.78%, payout ratio at 33.28%. PEG at 0.72. Revenue grew by 30.4% during the most recent quarter ($4,564M vs. $3,500M y/y). Accounts receivable grew by 17.75% during the same time period ($1,360M vs. $1,155M y/y). Receivables, as a percentage of current assets, decreased from 38.12% to 36.19% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

2. R.G. Barry Corporation (DFZ): Market cap at $137.07M, most recent closing price at $12.11. Dividend yield at 2.61%, payout ratio at 24.36%. PEG at 0.75. Revenue grew by 24.86% during the most recent quarter ($25.11M vs. $20.11M y/y). Accounts receivable grew by 12.11% during the same time period ($14.9M vs. $13.29M y/y). Receivables, as a percentage of current assets, decreased from 20.87% to 19.88% during the most recent quarter (comparing 13 weeks ending 2012-03-31 to 13 weeks ending 2011-04-02).

3. Caterpillar Inc. (CAT): Manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Market cap at $56.86B, most recent closing price at $85.84. Dividend yield at 2.11%, payout ratio at 22.56%. PEG at 0.63. Revenue grew by 23.41% during the most recent quarter ($15,981M vs. $12,949M y/y). Accounts receivable grew by 5.86% during the same time period ($18,301M vs. $17,288M y/y). Receivables, as a percentage of current assets, decreased from 49.95% to 45.51% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

4. Herbalife Ltd. (HLF): Sells weight management, nutritional supplement, energy, sports and fitness, and personal care products worldwide. Market cap at $5.25B, most recent closing price at $44.40. Dividend yield at 2.67%, payout ratio at 24.47%. PEG at 0.85. Revenue grew by 21.26% during the most recent quarter ($964.17M vs. $795.1M y/y). Accounts receivable grew by -1.15% during the same time period ($106.65M vs. $107.89M y/y). Receivables, as a percentage of current assets, decreased from 15.29% to 12.62% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

5. AAR Corp. (AIR): Provides products and services for the aviation, government, and defense markets worldwide. Market cap at $464.95M, most recent closing price at $11.57. Dividend yield at 2.60%, payout ratio at 15.97%. PEG at 0.43. Revenue grew by 16.63% during the most recent quarter ($534.2M vs. $458.04M y/y). Accounts receivable grew by 10.48% during the same time period ($331.48M vs. $300.03M y/y). Receivables, as a percentage of current assets, decreased from 32.34% to 31.11% during the most recent quarter (comparing 3 months ending 2012-02-29 to 3 months ending 2011-02-28).

6. Koppers Holdings Inc. (KOP): Provides carbon compounds and commercial wood treatment products to aluminum, railroad, specialty chemical, utility, rubber, concrete, and steel industries. Market cap at $695.96M, most recent closing price at $33.08. Dividend yield at 2.86%, payout ratio at 42.71%. PEG at 0.89. Revenue grew by 11.54% during the most recent quarter ($380.9M vs. $341.5M y/y). Accounts receivable grew by 6.01% during the same time period ($192.4M vs. $181.5M y/y). Receivables, as a percentage of current assets, decreased from 42.92% to 42.31% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

7. Murphy Oil Corporation (MUR): Engages in the exploration and production of oil and gas properties worldwide. Market cap at $8.92B, most recent closing price at $45.41. Dividend yield at 2.40%, payout ratio at 26.88%. PEG at 0.81. Revenue grew by 11.53% during the most recent quarter ($6,994.52M vs. $6,271.67M y/y). Accounts receivable grew by -20.09% during the same time period ($1,485.06M vs. $1,858.53M y/y). Receivables, as a percentage of current assets, decreased from 47.39% to 39.03% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

8. Nacco Industries Inc. (NC): Engages in lift trucks, small appliances, specialty retail, and mining businesses primarily in the Americas, Europe, and the Asia-Pacific. Market cap at $850.58M, most recent closing price at $101.10. Dividend yield at 2.16%, payout ratio at 14.38%. PEG at 0.32. Revenue grew by 7.74% during the most recent quarter ($803.2M vs. $745.5M y/y). Accounts receivable grew by -4.36% during the same time period ($445.4M vs. $465.7M y/y). Receivables, as a percentage of current assets, decreased from 36.29% to 33.2% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

9. DDI Corp. (DDIC): Provides printed circuit board engineering and manufacturing services primarily in North America. Market cap at $266.81M, most recent closing price at $12.99. Dividend yield at 3.70%, payout ratio at 37.00%. PEG at 0.79. Revenue grew by 3.69% during the most recent quarter ($68.91M vs. $66.46M y/y). Accounts receivable grew by -1.91% during the same time period ($43.12M vs. $43.96M y/y). Receivables, as a percentage of current assets, decreased from 47.55% to 43.28% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

10. The Interpublic Group of Companies, Inc. (IPG): Provides advertising and marketing services worldwide. Market cap at $4.72B, most recent closing price at $10.52. Dividend yield at 2.25%, payout ratio at 20.81%. PEG at 0.77. Revenue grew by 2.17% during the most recent quarter ($1,506.8M vs. $1,474.8M y/y). Accounts receivable grew by -6.59% during the same time period ($3,732.1M vs. $3,995.4M y/y). Receivables, as a percentage of current assets, decreased from 53.46% to 52.47% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

11. Xerox Corp. (XRX): Engages in the development, manufacture, marketing, service, and finance of document equipment, software, solutions, and services worldwide. Market cap at $10.11B, most recent closing price at $7.53. Dividend yield at 2.27%, payout ratio at 18.98%. PEG at 0.72. Revenue grew by 0.7% during the most recent quarter ($5,503M vs. $5,465M y/y). Accounts receivable grew by -14.33% during the same time period ($5,203M vs. $6,073M y/y). Receivables, as a percentage of current assets, decreased from 65.87% to 58.58% 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.

Source: 11 Undervalued Dividend Stocks With Strong Receivable Trends