6 Highly Profitable High Dividend Yield Stocks

by: Kapitall

If you like the safety that dividend income can offer, here are some ideas on how to find interesting dividend paying stocks.

We ran a screen on stocks paying dividend yields above 4% and sustainable payout ratios above 50%. To control for "value traps," we screened that these stocks have performed positively over the last month.

We then screened for those with impressive profitability, beating their industry averages of gross, operating, and pretax margins.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

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

List sorted by dividend yield.

1. USA Mobility, Inc. (USMO): Provides wireless communications solutions to the healthcare, government, enterprise, and emergency response sectors in the United States. Dividend yield at 6.69%, payout ratio at 40.33%. TTM gross margin at 66.92% vs. industry average at 60.62%. TTM operating margin at 28.7% vs. industry average at 21.44%. TTM pretax margin at 26.51% vs. industry average at 16.55%.

2. White River Capital Inc (NYSEMKT:RVR): Engages in specialized indirect auto finance business. Dividend yield at 4.76%, payout ratio at 38.28%. TTM gross margin at 49.24% vs. industry average at 43.48%. TTM operating margin at 48.25% vs. industry average at 39.77%. TTM pretax margin at 42.04% vs. industry average at 25.09%.

3. New Hampshire Thrift Bancshares Inc. (NHTB): Operates as the holding company for Lake Sunapee Bank, fsb that provides banking and other financial services in New Hampshire and Vermont. Dividend yield at 4.33%, payout ratio at 43.25%. TTM gross margin at 78.93% vs. industry average at 63.36%. TTM operating margin at 38.25% vs. industry average at 35.67%. TTM pretax margin at 22.% vs. industry average at 12.72%.

4. Enersis S.A. (ENI): Engages in the generation, transmission, and distribution of electricity in Chile, Argentina, Brazil, Colombia, and Peru. Dividend yield at 4.06%, payout ratio at 38.79%. TTM gross margin at 30.49% vs. industry average at 26.86%. TTM operating margin at 24.23% vs. industry average at 18.42%. TTM pretax margin at 21.16% vs. industry average at 14.14%.

5. Commercial National Financial Corp. (NASDAQ:CNAF): Operates as a holding company for the Commercial Bank & Trust of PA that provides various commercial banking and trust services primarily in Pennsylvania. Dividend yield at 4.06%, payout ratio at 43.12%. TTM gross margin at 89.5% vs. industry average at 71.34%. TTM operating margin at 51.75% vs. industry average at 40.69%. TTM pretax margin at 34.7% vs. industry average at 22.13%.

6. Hasbro Inc. (NASDAQ:HAS): Engages in the design, manufacture, and marketing of games and toys. Dividend yield at 4.02%, payout ratio at 38.63%. TTM gross margin at 59.68% vs. industry average at 44.74%. TTM operating margin at 14.01% vs. industry average at 12.2%. TTM pretax margin at 11.11% vs. industry average at 10.22%.

*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.