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By James Dennin for Kapitall.
Last week was a rough one for stocks, with the S&P 500 posting
its biggest weekly loss since June 2012. As of Monday however, positive earnings helped push markets back up.
Even Argentina's looming default and revelations that Portugal's largest bank is under capitalized were not enough to end 2014's bull market, which many worry has lasted too long already.
The S&P 500 has gone without a major correction of 10% or more since 2011, although the S&P—at about 17.5 times earnings—is still trading about in line with its historical average. And the most telling sign of an ending bull market, when individual investors finally catch on and pile in, still hasn't come.
With that in mind we decided to screen for dividend stocks, with a screen focused on larger American companies. So we screened the S&P 500 to see which companies were experiencing spikes in institiutional purchasing from groups like hedge funds.
Since fund managers often have access to the best information, this purchasing can stimulate other buyers to follow suit. We screened the S&P 500 for signs of purchasing and found 8 stocks.
Do you think managers are right to be bullish one these companies? Use the list below to begin your analysis and let us know what you think over time.
Click on the interactive chart to view dividends over time. 1. Alcoa, Inc. (
AA): Engages in the production and management of aluminum, fabricated aluminum, and alumina. Market cap at $19.34B, most recent closing price at $16.44.
Net institutional purchases in the current quarter at 68.4M shares, which represents about 5.85% of the company's float of 1.17B shares.
Biggest holder: Vanguard Group, Inc. (The) at a 6.31% stake.
2. Applied Materials Inc. (
AMAT): Provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide. Market cap at $25.67B, most recent closing price at $21.09.
Net institutional purchases in the current quarter at 64.9M shares, which represents about 5.36% of the company's float of 1.21B shares.