Menu
Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

Here's How to Find the Best Dividend Stocks


Here's How to Find the Best Dividend Stocks

Finding a great dividend stock is about more than just finding the stock with the biggest yield. Sure, when dividends are your focus, the dividend yield is the most important metric. But there are a number of other factors to consider.

For example, you might find a stock paying a great dividend today. But if the company isn't generating the free cash flow it needs to fund its dividend, it might be forced to cut its dividend tomorrow. (In which case, you'll be stuck owning a not-so-great dividend stock -- and probably one whose stock price is plummeting, as other investors flee the falling dividend).

Of course, if falling dividends are bad, then growing dividends must be good. In that case, you might also look into a dividend stock's payout ratio. This metric expresses, as a percentage, the dividends a company pays relative to the earnings it uses to pay them. A stock with a 100% payout ratio may be "maxed out" and financially incapable of growing its dividend. Conversely, a dividend stock with a payout ratio of 50% might still have room to grow its dividend over time.

Continue reading


Source: Fool.com

Intel Corp. Stock

€86.62
-0.640%
Intel Corp. shows a slight decrease today, losing -€0.560 (-0.640%) compared to yesterday.
Our community is currently high on Intel Corp. with 46 Buy predictions and 24 Sell predictions.
On the other hand, the target price of 72 € is below the current price of 86.62 € for Intel Corp., so the potential is actually -16.88%.
Like: 0
Share

Comments