Interested in stocks paying big dividend yields? We ran a profitability screen on dividend stocks that might be up your alley.
We began by screening for high dividend yield stocks: those paying dividend yields above 4% and sustainable payout ratios below 50%.
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. Market cap data sourced from Zacks Investment Research.
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Do you think these names pay reliable dividends? Use this list as a starting point for your own analysis.
List sorted by dividend yield.
1. Citizens & Northern Corp. (CZNC): Operates as the holding for Citizens & Northern Bank, which provides various banking and mortgage products and services to individual and corporate customers in north central Pennsylvania and southern New York. Market cap at $230.84M, most recent closing price at $18.84. Dividend yield at 4.66%, payout ratio at 32.74%. TTM gross margin at 85.54% vs. industry average at 73.74%. TTM operating margin at 52.67% vs. industry average at 40.18%. TTM pretax margin at 42.72% vs. industry average at 24.15%.
2. USA Mobility, Inc. (USMO): Provides wireless communications solutions to the healthcare, government, enterprise, and emergency response sectors in the United States. Market cap at $238.56M, most recent closing price at $10.76. Dividend yield at 4.64%, payout ratio at 48.60%. TTM gross margin at 66.35% vs. industry average at 58.03%. TTM operating margin at 26.34% vs. industry average at 20.94%. TTM pretax margin at 24.31% vs. industry average at 14.32%.
3. American National Bankshares Inc. (AMNB): Operates as the bank holding company for American National Bank and Trust Company that provides various commercial, mortgage, and consumer banking products and services to individuals and businesses in Virginia and North Carolina. Market cap at $175.71M, most recent closing price at $22.26. Dividend yield at 4.10%, payout ratio at 42.00%. TTM gross margin at 82.37% vs. industry average at 73.74%. TTM operating margin at 47.88% vs. industry average at 40.18%. TTM pretax margin at 33.46% vs. industry average at 24.15%.
*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.