If your goal is to bring in supplemental income from your investments, it can be useful to scan dividend stocks to find moderate to high yielders. This can give you an idea of how different companies compare with each other in terms of yields and reliability. To maintain attractive yields, a company must have strong profits. Today we developed a list of companies that are highly profitable. In addition, analysts have weighed in and recently deemed 'Buy' ratings for these dividend stocks. Use the information below to begin your own assessment.
The Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability. Net Margin = Net Income/Total Revenue
The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin is increasing over time this means that it's earning more per dollar of sales. Finding trends in the Operating Profit Margin helps investors identify companies that are improving profitability over time and managing the economic landscape better than competitors.
We first looked for dividend stocks. We next screened for businesses that analysts rate as "Buy" (2 < mean recommendation < 3). We then looked for companies that have been able to retain strong profit margins on the bottom line (Net Margin [TTM]>10%)(1-year operating margin>15%). We did not screen out any market caps or sectors.
Do you think these stocks deserve to grow higher? Use our screened list as a starting point for your own analysis.
1) CNB Financial Corp. (CCNE)
| Sector | Financial |
| Industry | Regional - Northeast Banks |
| Market Cap | $205.38M |
| Beta | 0.68 |
Key Metrics
| Dividend Yield | 4.00% |
| Payout Ratio | 49.33% |
| Analysts' Rating | 2.50 |
| Net Margin | 26.18% |
| Operating Profit Margin | 35.85% |
| Short Interest | 2.83% |
CNB Financial Corporation operates as the bank holding company for CNB Bank that provides various banking products and services in Pennsylvania. It accepts a range of deposit products, which comprise checking, savings, time deposit, and demand accounts, as well as certificates of deposit.
The company's loan portfolio includes commercial, industrial, agricultural, commercial mortgage, residential real estate, and consumer loans, as well as overdrafts and credit cards. It also provides trust and asset management services comprising the administration of trusts and estates, retirement plans, and other employee benefit plans, as well as a range of wealth management services.
In addition, the company, through its other subsidiaries, maintains investments in debt and equity securities; provides credit life and disability insurance products; sells nonproprietary annuities and other insurance products; and offers small balance unsecured loans and secured loans that are primarily collateralized by automobiles and equipment. It primarily serves individual, business, governmental, and institutional customers in Cambria, Cameron, Centre, Clearfield, Elk, Indiana, Jefferson, McKean, and Warren counties. The company operates 27 full-service offices and 1 loan production office. CNB Financial Corporation was founded in 1934 and is headquartered in Clearfield, Pennsylvania.
2) National Penn Bancshares Inc. (NPBC)
| Sector | Financial |
| Industry | Regional - Northeast Banks |
| Market Cap | $1.34B |
| Beta | 0.71 |
Key Metrics
| Dividend Yield | 4.04% |
| Payout Ratio | 30.97% |
| Analysts' Rating | 2.50 |
| Net Margin | 27.02% |
| Operating Profit Margin | 35.37% |
| Short Interest | 4.49% |
National Penn Bancshares, Inc. operates as the bank holding company for National Penn Bank that provides commercial banking products and services to residents and businesses primarily in eastern and central Pennsylvania. It offers various deposit products, including demand, NOW, money market, and other checking and savings accounts, as well as certificates of deposits.
The company also provides consumer loan products, such as installment loans, home equity loans, residential mortgage loans, educational loans, and credit cards; commercial loans, including short-term loans for seasonal and working capital purposes, term loans secured by real estate and other assets, loans for construction and expansion needs, and revolving credit facilities; and commercial real estate lending services, which include loans to developers of residential and commercial projects.
In addition, it offers automated teller services; safe deposit and night depository facilities; Internet banking services comprising online bill paying and mobile banking; and a range of cash management services, such as remote deposit capture, disbursement, collection, investment, and electronic banking services. Further, the company provides investment management and fiduciary services to individuals, corporations, government entities, and non-profit institutions; investment and consulting solutions for the retirement plan market; securities brokerage services; property and casualty insurance services for individuals and businesses; employee benefits consulting services; private banking services; and equipment leasing services. As of June 30, 2012, it operated through 121 branch offices, including 120 branches in Pennsylvania and 1 branch in Maryland. The company was founded in 1874 and is headquartered in Boyertown, Pennsylvania.
3) First Interstate Bancsystem Inc. (FIBK)
| Sector | Financial |
| Industry | Regional - Pacific Banks |
| Market Cap | $620.78M |
| Beta | - |
Key Metrics
| Dividend Yield | 3.34% |
| Payout Ratio | 42.39% |
| Analysts' Rating | 2.50 |
| Net Margin | 14.30% |
| Operating Profit Margin | 21.42% |
| Short Interest | 2.59% |
First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides commercial and consumer banking services. Its deposit products include checking, savings, time, and demand deposits; and repurchase agreements primarily for commercial and municipal depositors. The company's loan portfolio consists of a mix of real estate, consumer, commercial, agricultural, and other loans, including fixed and variable rate loans.
Its real estate loans comprise commercial real estate, construction, residential, agricultural, and other real estate loans. The company also provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. These services include the administration of estates and personal trusts; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and insurance planning.
It serves individuals, businesses, municipalities, and other entities in various industries, including energy, healthcare and professional services, education and governmental services, construction, mining, agriculture, retail and wholesale trade, and tourism. The company operates 72 banking offices in 42 communities located in Montana, Wyoming, and western South Dakota. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.
4) Canadian Imperial Bank of Commerce (CM)
| Sector | Financial |
| Industry | Money Center Banks |
| Market Cap | $30.79B |
| Beta | 1.35 |
Key Metrics
| Dividend Yield | 4.61% |
| Payout Ratio | 51.18% |
| Analysts' Rating | 2.50 |
| Net Margin | 23.82% |
| Operating Profit Margin | 30.44% |
| Short Interest | 0.59% |
Canadian Imperial Bank of Commerce provides various financial products and services to individual, small business, commercial, corporate, and institutional clients in Canada and internationally. It offers retail and business banking products and services; and wealth management services, including asset management, retail brokerage, and private wealth management services.
The company also provides wholesale banking services comprising credit, capital markets, investment banking, merchant banking, and research products and services to government, institutional, corporate, and retail clients. It offers its services through operating approximately 1,100 branches, as well as through its ABMs, mobile sales force, telephone banking, and online and mobile banking. The company was founded in 1867 and is headquartered in Toronto, Canada.
5) Brookfield Office Properties Inc. (BPO)
| Sector | Financial |
| Industry | Property Management |
| Market Cap | $8.45B |
| Beta | 1.84 |
Key Metrics
| Dividend Yield | 3.34% |
| Payout Ratio | 22.15% |
| Analysts' Rating | 2.50 |
| Net Margin | 71.81% |
| Operating Profit Margin | 26.02% |
| Short Interest | 1.80% |
Brookfield Office Properties Inc. is a publicly owned real estate investment firm. The firm engages in the ownership, development, and management of premier commercial properties. It also provides ancillary real estate service businesses, such as tenant service and amenities. The firm invests in the real estate markets of the United States with a focus on North American cities, including New York, Boston, Washington, D.C., Toronto, Calgary, Denver, and Minneapolis. It primarily invests in properties and development sites predominantly office buildings. The firm operates as a subsidiary of Brookfield Asset Management Inc. It was formerly known as Carena-Bancorp Holdings, Inc. and changed its name to Le Holding Carena-Bancorp Inc. in 1978. The company further changed its name to Carena-Bancorp, Inc. in 1985; to Carena Developments Limited in 1989; and to Brookfield Properties Corporation in 1996. Brookfield Properties was founded in 1923 and is based in New York, New York with an additional office in Toronto, Canada.
6) US Ecology, Inc. (ECOL)
| Sector | Industrial Goods |
| Industry | Waste Management |
| Market Cap | $343.13M |
| Beta | 1.15 |
Key Metrics
| Dividend Yield | 3.84% |
| Payout Ratio | 61.76% |
| Analysts' Rating | 2.50 |
| Net Margin | 13.82% |
| Operating Profit Margin | 24.25% |
| Short Interest | 2.89% |
US Ecology, Inc., through its subsidiaries, provides waste treatment, disposal, recycling, and transportation services to commercial and government entities in the United States. The company offers treatment and disposal services for radioactive, hazardous, polychlorinated biphenyl, and non-hazardous industrial wastes. Its customers include oil refineries, chemical production facilities, manufacturers, electric utilities, steel mills, biotechnology companies, military installations, waste brokers/aggregators, and medical and academic institutions. The company was formerly known as American Ecology Corporation and changed its name to US Ecology, Inc. in February 2010. US Ecology, Inc. was founded in 1952 and is headquartered in Boise, Idaho.
7) Costamare Inc. (CMRE)
| Sector | Services |
| Industry | Shipping |
| Market Cap | $880.04M |
| Beta | - |
Key Metrics
| Dividend Yield | 8.32% |
| Payout Ratio | 76.24% |
| Analysts' Rating | 2.50 |
| Net Margin | 22.40% |
| Operating Profit Margin | 44.01% |
| Short Interest | 1.40% |
Costamare, Inc. owns and charters containerships to liner companies. Its fleet consists of 56 containerships with a total capacity of approximately 324,000 TEU. The company was founded in 1975 and is based in Athens, Greece.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/31/2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: This article was prepared for ZetaKap Media by one of our full-time analysts. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.
