Do you like the comfort that dividend income can bring? Do you follow the trends of smart money managers? We researched stocks with this in mind.
To create the list below we looked for stocks with a return on investment (ROI) above the industry average. ROI is a popular measure of profitability. It is calculated by dividing net profits by total assets.
We took this a step further by looking for stocks that pay a dividend yield of at least 2%, but not higher than 5%. This allowed us to focus on names with a strong credit profile.
Finally, we researched their 13F's looking for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.
Interactive Chart: Press Play to compare changes in analyst changes over the last two years for the three stocks mentioned below.
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Would you invest in these companies? Use this list as a starting point for your analysis.
1. National Research Corp. (NRCI, Earnings, Analysts, Financials): Provides performance measurement and improvement services, healthcare analytics, and governance education to the healthcare industry in the United States and Canada. Market cap at $398.91M, most recent closing price at $57.73.
Net institutional purchases in the current quarter at 302.0K shares, which represents about 10.86% of the company's float of 2.78M shares. The 2 top holders of the stock are Bessemer Group, and Kayne Anderson Rudnick Investment Management. T
TM Return on Investments at 18.64% vs. an industry average at 8.93%.
Dividend yield at 2.2%
2. Nu Skin Enterprises Inc. (NUS, Earnings, Analysts, Financials): Develops and distributes anti-aging personal care products and nutritional supplements worldwide. Market cap at $2.95B, most recent closing price at $50.66.
Net institutional purchases in the current quarter at 3.6M shares, which represents about 7.03% of the company's float of 51.23M shares. The 2 top holders of the stock are Royce & Associates, and FMR, LLC.
TTM Return on Investments at 18.64% vs. an industry average at 8.93%.
Dividend yield at 2.4%.
3. PacWest Bancorp (PACW, Earnings, Analysts, Financials): Operates as the bank holding company for Pacific Western Bank that provides commercial banking products and services to small to medium size businesses, the owners and employees of those businesses, and households primarily in Southern California. Market cap at $1.01B, most recent closing price at $27.34.
Net institutional purchases in the current quarter at 3.1M shares, which represents about 11.58% of the company's float of 26.78M shares. The 2 top holders of the stock are FMR, LLC, and Lord Abbett & Co.
TTM Return on Investments at 9.23% vs. an industry average at 3.99%.
Dividend yield at 3.7%.
Written by Sabina Bhatia
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Analyze These Ideas: Getting StartedRead descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, FilingsNational Research Corp. (NRCI, Chart, Download SEC Filings) Nu Skin Enterprises Inc. (NUS, Chart, Download SEC Filings) PacWest Bancorp (PACW, Chart, Download SEC Filings)
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