Dividends Under The Radar

One strategy for enhancing equity returns is to "get there early" by buying stocks that institutional investors have not bought into. The strategy is implemented by first buying a stock with little institutional ownership, then waiting for the stock to attract attention among institutional investors. These large buyers would move the price of the stock up as they buy many outstanding shares. Restricting this strategy to dividend-yielding stocks would pay investors to wait for institutional buyers to become interested in stocks. The following screen was performed to find dividend-paying stocks with relatively little institutional ownership: Low institutional ownership. Each of the following stocks has a maximum institutional ownership of 30%. Dividend yield. Each stock pays a dividend yield of at least 2%, which is in excess of the 10-year treasury bond and the dividend yield of the S&P 500 (SPY). Dividend growth. Each of these stocks had over a 5%... Read more