How to Find the Best Dividend Stocks
In today's low interest rate environment, investors looking for income from their portfolios are increasingly turning to dividend-paying stocks. The challenge with that approach is that dividends are not guaranteed payments. As 2020 showed us, when companies run into serious trouble, they'll cut their dividends to protect their overall operations.
As a result, if you'd like to find the best dividend stocks, you'll have to look well beyond just the company's yield. You'll want to look for a healthy balance sheet, solid dividend coverage, and a reasonable operational moat to get a feel for how that dividend is supported and why it may be sustainable over time. A well-supported dividend still isn't a guarantee of success, but it certainly can help tilt the odds in your favor.
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Source Fool.com
