Looking for dividend stocks practically radiating with optimism? We created a list of high yield stocks that have the bullish backing of top investors. To create the list below we started only with the names offering a dividend yield north of 3% and market caps above $100 million for stability. These companies also have plenty of cash. We take a look at the past five quarters of operating expenses, and then compare the average of those to the company’s short-term investments and most recent cash on hand. A ratio of 1 means that they can cover their average expenses for the quarter without earning any income, assuming they haven’t increased operations. If the ratio is below 1, then they won’t be able to cover their costs. We analyzed their expenses and cash/investments for companies that have a cash/operating expense ratio over 4, just to have some extra cushion. This is especially important in uncertain times. If sales hit the fan in a bad way, it’s important to know that these firms are liquid enough to withstand a couple rough patches. It is also a healthy sign that they could then be headed towards expansion or even increase their dividend yield. We then looked for names with significant net purchases from institutional buyers in the current quarter. This means institutions, such as hedge funds and pension funds, have bought a significant amount of shares. Because these firms use a lot of money to establish these positions, and often have much more sophisticated market research on hand than Main Street investors, we can assume they have done their due diligence and have good cause to feel bullish about these stocks. Business Section: Investing Ideas These are the results of the screen listed below – these dividend stocks have strong cash holdings. They also have the confidence of institutional buyers. 1. Two Harbors Investment Corp. ( TWO): Operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS) and related investments. Market cap at $3.42B, most recent closing price at $11.59. Dividend yield at 19.78%. Average quarterly operating expense over the last five quarters at $55.76M, vs. most recent cash and short term investments at $833.61M, implies a Cash / Avg. Operating Expense ratio at 14.95. Net institutional purchases in the current quarter at 59.6M shares, which represents about 20.28% of the company’s float of 293.85M shares.