Here's How to Find the Best Dividend Stocks
There is no magic formula for picking dividend stocks, but there is a reliable process. Specifically, there are a few steps to take to find the companies that can give cash back to shareholders, can easily afford it, and are likely to increase the amount each year. Let's look at how to find them.
First, an investor has to decide if there is a yield that they absolutely require. Knowing that can help filter out a lot of companies that don't make the cut. However, it's important to decide whether share buybacks should count in the yield. After all, when a company buys back shares it is returning capital in the most tax-efficient way. As Warren Buffett says, if you need cash you can sell some shares.
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Source Fool.com
