How to Find the Best Dividend Stocks
Experienced investors know that a diversified stock portfolio offers a much better chance of reducing investment risk and potentially increasing the reward. Dividend-paying stocks can help create that diversity.
As with any other part of your portfolio, you are undoubtedly interested in finding the top dividend-paying stocks to add. That means knowing what to look for and what to avoid. For instance, the best dividend-paying stocks aren't necessarily those with the highest yield, since that yield may not prove sustainable and could actually be an indication that the company is about to cut the payment.
There are some tried-and-true questions you can ask as you analyze potential dividend payers. Let's review three questions you should try to answer to find the best dividend stocks.
Source Fool.com
