3 High Dividend Yield Stocks With Strong Inventory Trends

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Includes: COP, EQNR, STX
by: Kapitall

Do you prefer stocks that pay handsome dividend income? For a closer look at some interesting dividend names, we ran a screen.

We began by screening for stocks paying big dividend yields above 4% and sustainable payout ratios below 50%.

We then screened for strong sales trends by comparing growth in revenue to growth in inventory over the last year. We screened for stocks with positive sales trends, with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.

To screen for strengthening liquidity, we also only focused on those companies with inventory decreasing as a percent of current assets.

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 have strong sales trends? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. Seagate Technology PLC (NASDAQ:STX): Designs, manufactures, markets, and sells hard disk drives for the enterprise, client compute, and client non-compute market applications in the United States and internationally. Market cap at $10.14B, most recent closing price at $23.85. Dividend yield at 4.19%, payout ratio at 17.48%. Revenue grew by 65.12% during the most recent quarter ($4,450M vs. $2,695M y/y). Inventory grew by 0.84% during the same time period ($841M vs. $834M y/y). Inventory, as a percentage of current assets, decreased from 15.15% to 13.21% during the most recent quarter (comparing 13 weeks ending 2012-03-30 to 13 weeks ending 2011-04-01).

2. Statoil ASA (STO): Engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products. Market cap at $72.38B, most recent closing price at $22.70. Dividend yield at 4.71%, payout ratio at 25.53%. Revenue grew by 28.64% during the most recent quarter ($195,401M vs. $151,895M y/y). Inventory grew by -7.22% during the same time period ($25,353M vs. $27,327M y/y). Inventory, as a percentage of current assets, decreased from 15.37% to 11.98% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. ConocoPhillips (NYSE:COP): Operates as an integrated energy company worldwide. Market cap at $68.41B, most recent closing price at $54.10. Dividend yield at 4.88%, payout ratio at 28.27%. Revenue grew by 0.18% during the most recent quarter ($58,354M vs. $58,247M y/y). Inventory grew by -23.56% during the same time period ($6,072M vs. $7,944M y/y). Inventory, as a percentage of current assets, decreased from 22.31% to 16.38% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, 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.