Hedge Funds Are Buying These 10 Highly Liquid Dividend Stocks

Liquidity is a very important consideration for dividend stocks. Companies with higher liquidity are considered more able to continue paying dividends if profits fall. That's because the company can use its sources of liquidity such as cash and marketable securities to bridge the gap and maintain payment.
Measuring liquidity
The current ratio is a measure of company's ability to pay its short-term obligations. It's calculated as current assets over current liabilities, where current assets include cash and accounts receivable, while current liabilities include accounts payable and short-term debt. In general, a current ratio under 1 suggests that the company would be unable to pay off its obligations if profits fell. With this in mind, we ran a screen on dividend stocks (yields over 1%) with high liquidity, with current ratios over 3.... Read more