Seeking Alpha – Analysts like to follow what institutional investors (like hedge fund managers) buy because they have access to sophisticated research and have a lot of experience in choosing investments. When they start buying a stock, it’s a signal to take a second look.
We ran a screen on the stocks of the S&P 500 paying dividend yields above 1% and sustainable payout ratios below 50% for those seeing significant net institutional purchases over the current quarter.
