10 Low Debt Dividend Stocks Seeing Significant Institutional Buying

When you consider a dividend stock, company debt levels should always be part of the process. Because debtholders will always be paid before shareholder dividends, large debt payments can put a wedge between the value to shareholders and debtholders, and this can ultimately threaten the dividend. We ran a screen of dividend stocks taking this idea into account. We searched for dividend stocks with sustainable dividend yields (below 7%) and payout ratios (below 35%) from companies carrying low debt relative to assets (with total debt to assets below 20%). From this list, we then found those that have seen significant buying from institutional investors over the current quarter. We also created a price-weighted index of... Read more