How to Screen For Dividend Stocks?

5 minutes read

When screening for dividend stocks, investors typically look for companies with a history of consistently paying dividends. This can be accomplished by looking at the company's dividend yield, which is calculated by dividing the annual dividend by the stock price. A higher dividend yield may indicate a more attractive investment opportunity.


Additionally, investors may also consider the company's dividend growth rate, which measures the rate at which the company's dividends have increased over time. Companies with a history of increasing dividends may be more likely to continue doing so in the future.


Other factors to consider when screening for dividend stocks include the company's payout ratio, which measures the percentage of earnings that are paid out as dividends, as well as the company's financial health and stability. It is important to conduct thorough research and analysis before investing in any dividend stock to ensure a sound investment decision.


How to screen for dividend stocks with a high dividend payout ratio?

One way to screen for dividend stocks with a high dividend payout ratio is to use a stock screener tool that allows you to filter stocks based on their dividend payout ratio. Here are the steps you can follow to screen for dividend stocks with a high payout ratio:

  1. Use a stock screener: There are many stock screener tools available online that allow you to filter stocks based on various criteria, including dividend payout ratio. Some popular stock screeners include Yahoo Finance, Finviz, and Google Finance.
  2. Set your criteria: In the stock screener tool, choose the option to filter stocks based on their dividend payout ratio. You can specify a range for the payout ratio that you consider to be "high", such as 50% or higher.
  3. Run the screen: Once you have set your criteria, run the screen to generate a list of dividend stocks that meet your requirements. You can further refine the results by adding additional criteria, such as dividend yield or market cap.
  4. Analyze the results: Review the list of dividend stocks with a high payout ratio that the stock screener tool has generated. Look for stocks that have a consistent track record of paying dividends and have strong financial fundamentals.
  5. Conduct further research: Once you have identified potential dividend stocks with a high payout ratio, conduct further research to assess the company's financial health, growth prospects, and sustainability of the dividend payments. Consider factors such as earnings growth, free cash flow, and dividend history.


By following these steps, you can screen for dividend stocks with a high dividend payout ratio and identify potential investment opportunities in companies that offer attractive dividend yields.


How to screen for dividend stocks with a high cash flow per share?

There are a few key metrics that you can use to screen for dividend stocks with a high cash flow per share:

  1. Look for stocks with a high free cash flow yield. Free cash flow is a measure of the cash a company generates after accounting for capital expenditures. A high free cash flow yield indicates that a company is generating a significant amount of cash relative to its stock price.
  2. Calculate the cash flow per share for each stock you are considering. This can be done by dividing the company's total cash flow by the number of shares outstanding. A higher cash flow per share indicates that the company is generating more cash on a per-share basis.
  3. Consider the dividend yield of the stock. Dividend yield is calculated by dividing the annual dividend per share by the stock price. Look for stocks with a high dividend yield, as this can indicate that the company has a strong cash flow and is able to sustain its dividend payments.
  4. Evaluate the company's dividend payout ratio. This ratio measures the percentage of a company's earnings that are paid out as dividends. A lower payout ratio indicates that the company has more room to increase its dividend payments in the future.


By using these metrics to screen for dividend stocks, you can identify companies that have a strong cash flow per share and are likely to sustain and grow their dividend payments over time.


How to screen for dividend stocks based on yield?

  1. Use a stock screener tool: You can use online stock screeners like Yahoo Finance, Google Finance, or Morningstar to screen for dividend stocks based on yield. These tools allow you to input specific criteria, such as minimum dividend yield, to filter out stocks that meet your requirements.
  2. Set a minimum yield threshold: Decide on a minimum dividend yield that you are looking for in a dividend stock. Typically, dividend yields are measured as a percentage of the stock's current price. For example, if a stock's price is $50 and its annual dividend payment is $2, the dividend yield would be 4% ($2/$50 = 0.04 or 4%).
  3. Look for consistent dividend payers: Focus on companies that have a history of consistently paying dividends. Companies with a track record of stable or increasing dividend payments are generally considered more reliable in terms of dividend income.
  4. Consider dividend growth: In addition to high yield, you may also want to consider looking for stocks with a history of growing their dividend payouts over time. Companies that regularly increase their dividend payments are often seen as strong performers with solid financial health.
  5. Research the company: Before investing in dividend stocks based on yield alone, it's essential to conduct thorough research on the company's financial health, industry trends, and growth prospects. A high dividend yield could be a sign of potential risks such as an unsustainable dividend payout ratio or declining business performance. Consider factors such as payout ratio, dividend sustainability, and earnings growth when evaluating dividend stocks.
Facebook Twitter LinkedIn Telegram

Related Posts:

To find stocks with high dividend yield, investors can start by looking at companies that have a track record of paying consistent dividends. These companies are often referred to as "dividend aristocrats" or "dividend champions" and can be fou...
Using a stock screener is a great way to find stocks with high dividend yields. To do this, start by setting your search criteria to filter for stocks with dividend yields higher than a certain threshold. This can help you identify companies that regularly pay...
Using a stock screener is a popular method for finding value stocks in the market. Value stocks are typically those that are considered undervalued based on certain metrics, such as price-to-earnings ratio, price-to-book ratio, and dividend yield. To find valu...
When day trading, it is important to screen for stocks with tight bid-ask spreads to ensure that you are able to enter and exit trades quickly and at a fair price. One way to screen for stocks with tight bid-ask spreads is to use a stock screener that allows y...
When screening for stocks with high beta for day trading, it is important to focus on stocks that have high volatility and are likely to experience significant price movements throughout the trading day. Beta is a measure of a stock's volatility in relatio...