The short interest data for the July 15 settlement date is out and we have compared the defensive dividend stocks, aside of utilities, to what has happened since the June 30 settlement date.

The interesting point about the defensive high-yield dividends is that something is happening that is unequal in trends. The changes look a bit all over the place, implying that the short sellers are looking at individual issues rather than attacking sectors. The changes were mild in some and massive in others.

24/7 Wall St. would remind readers that short selling a high-dividend stock takes much more conviction and courage than short selling growth stocks. On top of being short a stock and having to pay borrowing costs, those short sellers are effectively assuming the liability of paying that dividend out on top of just the cost to borrow a stock.

Altria Group Inc. (NYSE: MO) had seen a growing short interest, but this reversed itself in June and continued to drop in July. The July 15 short interest was 20,072,105 shares, versus a short interest of 20,873,376 shares on June 30. Altria’s yield is now about 4.5%, and the stock is down $2 from a 52-week and all-time high.

AT&T Inc. (NYSE: T) previously had only a small uptick of 0.5% in its short interest in June, but the short interest rose 4.4% to 199,960,170 shares on July 15, versus 191,553,699 shares as of June 30. AT&T’s earnings were unimpressive, and its dividend yield is 5.2%. It trades at only about 13.5 times this year’s expected earnings.

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General Electric Co. (NYSE: GE) had previously seen a small drop in the short interest, but that short interest plummeted in July, down almost 15% to 58,090,804 shares as of July 15 from 68,273,172 shares short as of June 30. GE’s common stock dividend yield is 3.4% now that shares have pulled back to under $26 from a recent peak of $28.09.

Kimberly-Clark Corp. (NYSE: KMB) had been seeing gains in the short interest, but the mid-July report was too narrow to even bother covering in much detail — 6,406,568 shares short as of July 15 versus 6,538,475 shares short as of June 30. The consumer products giant’s dividend is back up to 3.1%, now that its stock has pulled back to the $109 area after an unimpressive earnings report.

Merck & Co. Inc. (NYSE: MRK) had previously seen a rise in its short interest, but the latest report showed a 0.9% drop, to 33,982,755 shares short as of July 15, versus 34,275,172 shares short as of June 30. Merck’s dividend yield is right at 3.0%, and it is still valued at almost 17 times expected 2014 earnings with no underlying growth story.

Pfizer Inc. (NYSE: PFE) had previously seen a very large jump higher (almost 16%) in the short interest during June, but this reversed course in July. The July 15 short interest was 60,916,961 shares short, down more than 7% from the 65,672,029 shares short as of June 30. Pfizer shares are now back up above $30, and the stock looks cheap compared to Merck, now at only about 13.5 times expected 2014 earnings, with a 3.4% yield.

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Procter & Gamble Co. (NYSE: PG) had been volatile in its short interest, but the mid-July short interest was down 3.2% to 25,763,514 shares on July 15 from 26,620,618 shares short on June 30. P&G’s dividend yield is 3.2%, and the stock trades at an expensive 18.3 times a blended earnings estimate of 2014/2015 (June fiscal year-end), despite being just under the $80 handle.

Verizon Communications Inc. (NYSE: VZ) has been dull in its short interest trends, and the mid-July report was a continuation of that, which only diminished part of the gain in June. Verizon’s short interest was down 1.5% to 37,276,496 shares as of July 15, versus 37,854,350 shares short as of June 30. Verizon’s dividend yield is currently much lower than AT&T’s, at just under 4.2% now that its stock is above $51. Verizon also trades with a slightly higher earnings multiple of 14.5 times expected 2014 earnings.

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