Hedge Funds Love 12 Dividend Stocks Reporting Next Week With A History Of Upside

Looking to trade on earnings season results? Is so, get ready for an interesting week. Of the nearly 500 stocks that have a strong and consistent history of positive earning surprises, meaning they have consistently beaten analyst expectations, more than 150 will be reporting next week.

We decided to take a closer look at this universe of stocks to see if there is a chance their winning streak will continue for another season. 

The stocks in our starting universe boast a history of surprising the market with positive earnings reports, with an average earnings surprise of at least 5% over the last five quarterly reports.

To find candidates for a winning streak we looked for bullish signals from institutional investors, such has hedge funds. Because these money managers typically have more access to market data than the average investor, their trading decisions can help signal for what's to come. We specifically screened for net institutional purchases in the current quarter that represent more than 5% of share float. 

Twenty-five stocks made the cut, but we took our screen a step further to pull out names offering a dividend. A strong earnings could lead to a boost in yield, so income investors may want to keep an eye out.

Twelve stocks are on our final list, which has an average 1-year return of 45% and an average dividend yield of 2.75%. Use this list as a starting point for your own analysis. 

Interactive chart. Press play to see changes in dividend yield for the first nine stocks on this list. Click through to access more tools, open a practice trading account, and more

1. Banner Corporation (BANR): Operates as the holding company for Banner Bank and Islanders Bank that provide commercial banking and financial products and services to individuals, businesses, and public sector entities. 

Market cap at $577.38M, most recent closing price at $29.67. 

In Mar 2012: Reported EPS at 0.4 vs. estimate at 0.22 (surprise of 81.8%). In Jun 2012: Reported EPS at 1.27 vs. estimate at 0.28 (surprise of 353.6%). In Sep 2012: Reported EPS at 0.79 vs. estimate at 0.48 (surprise of 64.6%). In Dec 2012: Reported 0.69 vs. estimate at 0.63 (surprise of 9.5%. [Average earnings surprise at 127.38%]. 

Dividend yield at 1.59% Earnings date: 04/22/13.  

Net institutional purchases in the current quarter at 1.2M shares, which represents about 6.31% of the company's float of 19.01M shares. 

2. Barrett Business Services Inc. (BBSI): Offers various human resource management services to small and medium-sized businesses in the United States. Market cap at $388.77M, most recent closing price at $55.38.

In Mar 2012: Reported EPS at -0.19 vs. estimate at -0.2 (surprise of 5%). In Jun 2012: Reported EPS at 0.53 vs. estimate at 0.44 (surprise of 20.5%). In Sep 2012: Reported EPS at 0.81 vs. estimate at 0.71 (surprise of 14.1%). In Dec 2012: Reported 0.8 vs. estimate at 0.77 (surprise of 3.9%. [Average earnings surprise at 10.88%].

Dividend yield at 0.92% Earnings date: 04/24/13.  

Net institutional purchases in the current quarter at 380.3K shares, which represents about 5.58% of the company's float of 6.82M shares. 

3. Belo Corp. (BLC): Operates as a television company. Market cap at $980.58M, most recent closing price at $10.27.

In Mar 2012: Reported EPS at 0.14 vs. estimate at 0.12 (surprise of 16.7%).  In Jun 2012: Reported EPS at 0.24 vs. estimate at 0.19 (surprise of 26.3%). In Sep 2012: Reported EPS at 0.24 vs. estimate at 0.22 (surprise of 9.1%). In Dec 2012: Reported 0.37 vs. estimate at 0.33 (surprise of 12.1%. [Average earnings surprise at 16.05%]. 

Dividend yield at 3.02% Earnings date: 04/22/13.  

Net institutional purchases in the current quarter at 4.8M shares, which represents about 5.03% of the company's float of 95.35M shares. 

4. Diamond Offshore Drilling Inc. (DO): Operates as an offshore oil and gas drilling contractor worldwide. Market cap at $9.16B, most recent closing price at $65.91.

In Mar 2012: Reported EPS at 1.21 vs. estimate at 1 (surprise of 21%). In Jun 2012: Reported EPS at 1.09 vs. estimate at 0.9 (surprise of 21.1%). In Sep 2012: Reported EPS at 1.28 vs. estimate at 1.02 (surprise of 25.5%). In Dec 2012: Reported 1.41 vs. estimate at 1.1 (surprise of 28.2%. [Average earnings surprise at 23.95%].

Dividend yield at 0.77% Earnings date: 04/25/13.

Net institutional purchases in the current quarter at 7.5M shares, which represents about 10.89% of the company's float of 68.90M shares. 

5. First Community Bancshares, Inc. (Bluefield) (FCBC): Operates as a financial holding company of First Community Bank, N. Market cap at $299.35M, most recent closing price at $14.93.

In Mar 2012: Reported EPS at 0.32 vs. estimate at 0.27 (surprise of 18.5%). In Jun 2012: Reported EPS at 0.32 vs. estimate at 0.29 (surprise of 10.3%). In Sep 2012: Reported EPS at 0.44 vs. estimate at 0.35 (surprise of 25.7%). In Dec 2012: Reported 0.41 vs. estimate at 0.4 (surprise of 2.5%. [Average earnings surprise at 14.25%].

Dividend yield at 3.16% Earnings date: 04/24/13.  

Net institutional purchases in the current quarter at 1.0M shares, which represents about 6.% of the company's float of 16.67M shares. 

6. First Merchants Corp. (FRME): Provides financial and banking products and services. Market cap at $417.73M, most recent closing price at $14.35.

In Mar 2012: Reported EPS at 0.46 vs. estimate at 0.25 (surprise of 84%). In Jun 2012: Reported EPS at 0.28 vs. estimate at 0.23 (surprise of 21.7%). In Sep 2012: Reported EPS at 0.35 vs. estimate at 0.29 (surprise of 20.7%). In Dec 2012: Reported 0.32 vs. estimate at 0.3 (surprise of 6.7%. [Average earnings surprise at 33.28%].

Dividend yield at 0.82% Earnings date: 04/25/13.  

Net institutional purchases in the current quarter at 2.0M shares, which represents about 7.46% of the company's float of 26.80M shares. 

7. Kohlberg Kravis Roberts & Co. (KKR): A private equity and venture capital firm specializing in acquisitions, leveraged buyouts, management buyouts, and mezzanine investments in large cap companies. Market cap at $4.03B, most recent closing price at $19.26.

In Mar 2012: Reported EPS at 0.99 vs. estimate at 0.74 (surprise of 33.8%). In Jun 2012: Reported EPS at 0.74 vs. estimate at 0.16 (surprise of 362.5%). In Sep 2012: Reported EPS at 0.69 vs. estimate at 0.48 (surprise of 43.8%). In Dec 2012: Reported 0.48 vs. estimate at 0.22 (surprise of 118.2%. [Average earnings surprise at 139.58%].

Dividend yield at 14.55% Earnings date: 04/22/13.  

Net institutional purchases in the current quarter at 16.4M shares, which represents about 6.98% of the company's float of 234.85M shares. 

8. Nu Skin Enterprises Inc. (NUS): Develops and distributes anti-aging personal care products and nutritional supplements worldwide. Market cap at $2.95B, most recent closing price at $50.50.

In Mar 2012: Reported EPS at 0.74 vs. estimate at 0.7 (surprise of 5.7%). In Jun 2012: Reported EPS at 0.94 vs. estimate at 0.83 (surprise of 13.3%). In Sep 2012: Reported EPS at 0.87 vs. estimate at 0.77 (surprise of 13%). In Dec 2012: Reported 0.97 vs. estimate at 0.94 (surprise of 3.2%. [Average earnings surprise at 8.8%].

Dividend yield at 2.42% Earnings date: 04/22/13.  

Net institutional purchases in the current quarter at 3.4M shares, which represents about 6.64% of the company's float of 51.23M shares. 

9. Pentair, Inc. (PNR): Operates as a diversified industrial manufacturing company worldwide. Market cap at $10.43B, most recent closing price at $50.60.

In Mar 2012: Reported EPS at 0.64 vs. estimate at 0.56 (surprise of 14.3%). In Jun 2012: Reported EPS at 0.83 vs. estimate at 0.8 (surprise of 3.7%). In Sep 2012: Reported EPS at 0.64 vs. estimate at 0.63 (surprise of 1.6%). In Dec 2012: Reported 0.47 vs. estimate at 0.44 (surprise of 6.8%. [Average earnings surprise at 6.6%].

Dividend yield at 1.83% Earnings date: 04/23/13.  

Net institutional purchases in the current quarter at 77.5M shares, which represents about 37.76% of the company's float of 205.26M shares. 

10. ResMed Inc. (RMD): Engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. Market cap at $6.32B, most recent closing price at $44.04.

In Mar 2012: Reported EPS at 0.46 vs. estimate at 0.41 (surprise of 12.2%). In Jun 2012: Reported EPS at 0.55 vs. estimate at 0.49 (surprise of 12.2%). In Sep 2012: Reported EPS at 0.5 vs. estimate at 0.46 (surprise of 8.7%). In Dec 2012: Reported 0.54 vs. estimate at 0.51 (surprise of 5.9%. [Average earnings surprise at 9.75%].

Dividend yield at 1.54% Earnings date: 04/25/13.  

Net institutional purchases in the current quarter at 8.0M shares, which represents about 5.67% of the company's float of 141.09M shares. 

11. Virgin Media, Inc. (VMED): Provides of entertainment and communications services in the United Kingdom. Market cap at $13.18B, most recent closing price at $48.93.

In Mar 2012: Reported EPS at 19 vs. estimate at 18.85 (surprise of 0.8%). In Jun 2012: Reported EPS at 22 vs. estimate at 21.05 (surprise of 4.5%). In Sep 2012: Reported EPS at 41 vs. estimate at 25.34 (surprise of 61.8%). In Dec 2012: Reported 59.86 vs. estimate at 31.23 (surprise of 91.7%. [Average earnings surprise at 39.7%].

Dividend yield at 0.33% Earnings date: 04/24/13.  

Net institutional purchases in the current quarter at 13.2M shares, which represents about 5.23% of the company's float of 252.27M shares. 

12. Western Digital Corp. (WDC): Engages in the design, development, manufacture, and sale of hard drives worldwide. Market cap at $11.85B, most recent closing price at $49.25. In Mar 2012: Reported EPS at 2.52 vs. estimate at 1.59 (surprise of 58.5%).

In Jun 2012: Reported EPS at 3.35 vs. estimate at 2.47 (surprise of 35.6%). In Sep 2012: Reported EPS at 2.36 vs. estimate at 2.29 (surprise of 3.1%). In Dec 2012: Reported 2.09 vs. estimate at 1.82 (surprise of 14.8%. [Average earnings surprise at 28%].

Dividend yield at 2% Earnings date: 04/24/13.  

Net institutional purchases in the current quarter at 12.6M shares, which represents about 5.88% of the company's float of 214.16M shares. 

 

- Rebecca Lipman, Kapitall Editor. Price data sourced from Yahoo! Finance, institutional data from Fidelity, all other data sourced from Finviz.

null

More from Stocks

The Stock Market Has Every Reason to See a Fresh Rally

The Stock Market Has Every Reason to See a Fresh Rally

3 Simple Tips on Investing From TheStreet's Jim Cramer

3 Simple Tips on Investing From TheStreet's Jim Cramer

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Tesla's Supercharger Network Is Booming -- Here's Why That's a Concern

Tesla's Supercharger Network Is Booming -- Here's Why That's a Concern

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly