3 Stocks with Below Average Payout Ratios and High Yields

Research, such as Credit Suisse analysts Pankaj N. Patel, Souheang Yao and Heath Barefoot's paper “High Yield, Low Payout”, has indicated that the combination of a high dividend yield and a low payout ratio is better than high yield alone. With that in mind, I screened for stocks in the S&P 1500 index with a payout ratios below the median of 43% and a dividend yield above 4%. Only four stocks met these criteria, of which I excluded Deluxe Corporation due to its high debt and its reduction of its dividend in the last five years.... Read more