10 Highly Profitable High Dividend Yield Stocks

by: Kapitall

Do you prefer stocks that pay reliable dividend income? For ideas on how to start your search, we ran a screen.

We began by screening for stocks paying high dividend yields, with dividend yields above 4% and sustainable payout ratios below 50%. We then screened for those with impressive profitability, with higher gross, operating, and pretax margins than their industry margins.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six 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 companies are profitable enough to offer higher dividend yields? Use this list as a starting point for your own analysis.

1. 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 4.16%, payout ratio at 40.90%. TTM gross margin at 90.47% vs. industry average at 71.87%. TTM operating margin at 54.41% vs. industry average at 40.06%.TTM pretax margin at 37.45% vs. industry average at 22.32%.

2. Community Trust Bancorp Inc. (NASDAQ:CTBI): Operates as the holding company for Community Trust Bank, Inc. Dividend yield at 4.04%, payout ratio at 48.82%. TTM gross margin at 80.09% vs. industry average at 71.74%. TTM operating margin at 48.66% vs. industry average at 40.25%.TTM pretax margin at 27.5% vs. industry average at 22.28%.

3. Deluxe Corp. (NYSE:DLX): Provides various personalized printed products, promotional products, and merchandising materials to small businesses and financial institutions in the United States, Canada, and Europe. Dividend yield at 4.17%, payout ratio at 35.56%. TTM gross margin at 70.51% vs. industry average at 39.95%. TTM operating margin at 20.24% vs. industry average at 14.93%.TTM pretax margin at 15.24% vs. industry average at 10.97%.

4. Empire District Electric Co. (NYSE:EDE): Primarily engages in the generation, purchase, transmission, distribution, and sale of electricity in Missouri, Kansas, Oklahoma, and Arkansas. Dividend yield at 4.97%, payout ratio at 48.63%. TTM gross margin at 33.72% vs. industry average at 26.75%. TTM operating margin at 22.71% vs. industry average at 18.24%.TTM pretax margin at 15.47% vs. industry average at 13.5%.

5. Hasbro Inc. (NASDAQ:HAS): Engages in the design, manufacture, and marketing of games and toys. Dividend yield at 4.06%, payout ratio at 41.25%. TTM gross margin at 51.06% vs. industry average at 43.37%. TTM operating margin at 14.2% vs. industry average at 12.3%.TTM pretax margin at 11.35% vs. industry average at 10.59%.

6. 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 4.28%, payout ratio at 43.25%. TTM gross margin at 78.93% vs. industry average at 62.55%. TTM operating margin at 38.25% vs. industry average at 34.36%. TTM pretax margin at 22.% vs. industry average at 12.9%.

7. Norwood Financial Corp. (NASDAQ:NWFL): Operates as the holding company for the Wayne Bank, which provides various commercial banking products and services to individuals, businesses, nonprofit organizations, and municipalities in Pennsylvania. Dividend yield at 4.60%, payout ratio at 49.02%. TTM gross margin at 79.21% vs. industry average at 71.87%. TTM operating margin at 48.23% vs. industry average at 40.06%.TTM pretax margin at 30.56% vs. industry average at 22.32%.

8. Public Service Enterprise Group Inc. (NYSE:PEG): Operates in the energy industry primarily in the northeastern and mid Atlantic United States. Dividend yield at 4.71%, payout ratio at 49.25%. TTM gross margin at 35.11% vs. industry average at 26.27%. TTM operating margin at 26.5% vs. industry average at 17.27%.TTM pretax margin at 21.02% vs. industry average at 12.66%.

9. White River Capital Inc (NYSEMKT:RVR): Engages in specialized indirect auto finance business. Dividend yield at 4.51%, payout ratio at 37.51%. TTM gross margin at 48.84% vs. industry average at 34.9%. TTM operating margin at 48.12% vs. industry average at 31.64%.TTM pretax margin at 41.66% vs. industry average at 25.15%.

10. Sempra Energy (NYSE:SRE): Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. Dividend yield at 4.09%, payout ratio at 33.97%. TTM gross margin at 27.12% vs. industry average at 26.27%. TTM operating margin at 17.38% vs. industry average at 17.28%.TTM pretax margin at 17.67% vs. industry average at 12.65%.

*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.