One of the most important considerations in choosing a source of dividend income is whether a company can continue to support their dividend with healthy cash flows. If cash-flow trends aren’t encouraging, the company may have trouble maintaining their dividend yield.
With this idea in mind, we screened dividend stocks paying at least 2% dividend yields for those exhibiting positive cash-flow trends. Using the ratio of free operating cash flow/revenue, we screened for companies with a trailing-twelve-month ratio at least 25% larger than their five-year average.
Here are the results of 10 dividend stocks with fastest cash flow growth and dividend yield figures:
1. F.N.B. Corporation (FNB)
Dividend yield at 4.55%
2. Tower Bancorp Inc. (TOBC)
Dividend yield at 4.09%
3. BancorpSouth, Inc. (BXS)
Dividend yield at 3.61%
4. Aircastle LTD (AYR)
Dividend yield at 3.21%
5. Intersections Inc. (INTX)
Dividend yield at 3.01%
6. Republic Bancorp Inc. (RBCAA)
Dividend yield at 2.74%
7. BB & T Corp. (BBT)
Dividend yield at 2.40%
8. Union First Market Bankshares Corporation (UBSH)
Dividend yield at 2.27%
9. Montpelier Re Holdings Ltd. (MRH)
Dividend yield at 2.24%
10. First Commonwealth Financial Corp. (FCF)
Dividend yield at 2.08%
Related Stock Ticker:
FCF, MRH, UBSH, BBT, RBCAA, INTX, AYR, BXS, TOBC, FNB
Source: Seeking Alpha