9 Dividend Stocks With Improving Profitability and Interest Coverage

When considering dividend stocks, it is important to also consider company profitability. If a firm’s profitability suffers, the dividend yield may be the first to go. We ran a screen on dividend stocks paying dividend yields above 2% and sustainable payout ratios below 35%. We screened this universe for stocks seeing significant improvements in profitability, comparing trailing-twelve-month EBITDA/common equity to the company’s five-year average. Because EBITDA does not take into account interest coverage, we also controlled for increases in the interest coverage ratio, comparing the trailing-twelve-month ratio to the prior-year’s TTM ratio.Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.... Read more