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Do you prefer stocks that pay part of their return in dividend income? For ideas on how to start your own dividend search, 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 with strong upward momentum, trading within 5% of their 52-week high.

Then to analyze these companies' profitability, we ran DuPont analysis on the names. DuPont analyzes profitability by breaking up return on equity (net income/equity) into three components:

ROE

= (Net Profit/Equity)

= (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)

= (Net Profit margin)*(Asset turnover)*(Leverage ratio)

Because increases in net margin and asset turnover are considered good things, DuPont focuses on companies with these positive characteristics: Increasing ROE along with,

•Decreasing leverage, (i.e. decreasing Asset/Equity ratio)

•Improving asset use efficiency (i.e. increasing Sales/Assets ratio) and improving net profit margin (i.e. increasing Net Income/Sales ratio)

Those companies that pass DuPont are seeing positive trends in the sources of their increasing profitability, which adds further weight to the idea that the names are profitable.

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 dividend yield.

1. Fidelity National Financial, Inc. (FNF): Provides title insurance, mortgage services, specialty insurance, and information services in the United States. Market cap at $4.27B, most recent closing price at $19.16. Dividend yield at 2.92%, payout ratio at 35.30%. The stock is currently trading 1.47% below its 52-week high. MRQ net profit margin at 6.25% vs. 3.75% y/y. MRQ sales/assets at 0.149 vs. 0.145 y/y. MRQ assets/equity at 2.143 vs. 2.272 y/y.

2. Bob Evans Farms Inc. (BOBE): Operates full-service restaurants under the Bob Evans and Mimi's Cafe brand names in the United States. Market cap at $1.11B, most recent closing price at $38.03. Dividend yield at 2.63%, payout ratio at 38.51%. The stock is currently trading 4.75% below its 52-week high. MRQ net profit margin at 5.33% vs. 4.39% y/y. MRQ sales/assets at 0.388 vs. 0.383 y/y. MRQ assets/equity at 1.623 vs. 1.648 y/y.

3. The Allstate Corporation (ALL): Engages in the personal property and casualty insurance, life insurance, retirement, and investment products businesses primarily in the United States. Market cap at $16.74B, most recent closing price at $34.06. Dividend yield at 2.58%, payout ratio at 41.38%. The stock is currently trading 1.00% below its 52-week high. MRQ net profit margin at 9.16% vs. 6.47% y/y. MRQ sales/assets at 0.066 vs. 0.062 y/y. MRQ assets/equity at 6.565 vs. 6.754 y/y.

4. The Marcus Corporation (MCS): Operates theatres, and hotels and resorts. Market cap at $405.79M, most recent closing price at $13.84. Dividend yield at 2.46%, payout ratio at 49.78%. The stock is currently trading 2.51% below its 52-week high. MRQ net profit margin at 10.07% vs. 8.79% y/y. MRQ sales/assets at 0.181 vs. 0.164 y/y. MRQ assets/equity at 1.979 vs. 2.045 y/y.

5. Frisch's Restaurants Inc. (FRS): Operates restaurants in the United States. Market cap at $131.11M, most recent closing price at $26.54.Dividend yield at 2.41%, payout ratio at 40.54%. The stock is currently trading 3.27% below its 52-week high. MRQ net profit margin at 4.11% vs. 2.76% y/y. MRQ sales/assets at 0.355 vs. 0.346 y/y. MRQ assets/equity at 1.512 vs. 1.579 y/y.

6. Wal-Mart Stores Inc. (WMT): Operates retail stores in various formats worldwide. Market cap at $226.93B, most recent closing price at $67.07. Dividend yield at 2.37%, payout ratio at 31.81%. The stock is currently trading 1.33% below its 52-week high. MRQ net profit margin at 3.31% vs. 3.26% y/y. MRQ sales/assets at 0.573 vs. 0.559 y/y. MRQ assets/equity at 2.858 vs. 2.865 y/y.

7. PH Glatfelter Co. (GLT): Manufactures and sells specialty papers and fiber-based engineered materials in the United States and internationally. Market cap at $680.74M, most recent closing price at $15.92. Dividend yield at 2.26%, payout ratio at 35.69%. The stock is currently trading 1.65% below its 52-week high. MRQ net profit margin at 4.73% vs. 4.36% y/y. MRQ sales/assets at 0.345 vs. 0.288 y/y. MRQ assets/equity at 2.231 vs. 2.377 y/y.

8. Snap-on Inc. (SNA): Manufactures and markets tools, diagnostics, equipment, software, and service solutions for professional users in the United States, the United Kingdom, Canada, Germany, Japan, France, Australia, Spain, the Netherlands, Italy, China, and Sweden. Market cap at $3.61B, most recent closing price at $62.17.Dividend yield at 2.19%, payout ratio at 26.76%. The stock is currently trading 1.79% below its 52-week high. MRQ net profit margin at 9.66% vs. 8.1% y/y. MRQ sales/assets at 0.198 vs. 0.181 y/y. MRQ assets/equity at 2.314 vs. 2.578 y/y.

9. Comcast Corporation (CMCSA): Provides entertainment, information, and communications products and services in the United States and internationally. Market cap at $80.83B, most recent closing price at $29.98. Dividend yield at 2.17%, payout ratio at 29.88%. The stock is currently trading 0.55% below its 52-week high. MRQ net profit margin at 8.23% vs. 7.78% y/y. MRQ sales/assets at 0.094 vs. 0.079 y/y. MRQ assets/equity at 3.327 vs. 3.33 y/y.

10. Hormel Foods Corp. (HRL): Produces and markets various meat and food products in the United States and Internationally. Market cap at $7.79B, most recent closing price at $29.52. Dividend yield at 2.03%, payout ratio at 31.08%. The stock is currently trading 2.90% below its 52-week high. MRQ net profit margin at 6.35% vs. 5.59% y/y. MRQ sales/assets at 0.467 vs. 0.44 y/y. MRQ assets/equity at 1.538 vs. 1.688 y/y.

11. Choice Hotels International Inc. (CHH): Operates as a hotel franchisor worldwide. Market cap at $2.15B, most recent closing price at $36.91. Dividend yield at 2.00%, payout ratio at 38.06%. The stock is currently trading 3.94% below its 52-week high. MRQ net profit margin at 15.48% vs. 13.65% y/y. MRQ sales/assets at 0.291 vs. 0.28 y/y. MRQ assets/equity at -16.93 vs. -8.411 y/y.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 11 Dividend Stocks Near Highs With Strong Sources Of Profitability