Best us dividend stocks to buy

Author: Markiza Date of post: 21.06.2017

As dividend growth investors age, they naturally experience a paradigm shift with regards to their investment goals. This transition typically involves selling low yield dividend stocks and reinvesting the proceeds into higher yielding alternatives.

So how do investors find high-quality stocks with above-average dividend yields? The downloadable High Dividend Stocks Spreadsheet below contains the following for each stock in the universe:.

Click here to download your spreadsheet of all high dividend stocks now. Keep reading this article to learn more about how to use this spreadsheet to improve your investing.

The payout ratio is calculated as follows. In general, the lower a payout ratio, the better. With that said, it is nearly impossible for a high dividend stock to have a very low payout ratio unless the security is trading at an exceedingly low valuation. The High Dividend Stocks Spreadsheet allows investors to easily identify high dividend stocks with reasonable payout ratios.

10 Best Dividend-Paying Stocks for

Click on the filter button for the payout ratio column. Exclude all companies with negative payout ratios by filtering with payout ratios greater than 0. It is prudent to put an upper bound on payout ratios, to exclude companies paying out an unreasonable proportion of their earnings as dividend payments. One of the largest perks about using a stock screener like this Excel document is the personalization capabilities — making it a useful tool for any investor.

Value is inherently different than price — just because a stock has a high market price does not mean it is a poor value if the underlying earnings-per-share are correspondingly robust.

10 Best Dividend-Paying Stocks for

Unfortunately, the highest quintile of dividend paying stocks is overvalued compared to its historical average. Alliance Bernstein , data as at September The data in the above diagram is a bit stale dated at September of , though the valuations of high dividend stocks are likely to be even more stretched today given the continuation of the current bull market.

Fortunately, the High Dividend Stocks Spreadsheet allows investors to filter not only for payout ratios as we have already seen but for price-to-earnings ratios the most common metric used to measure valuation.

There are many reasons. The most obvious is that high dividend stocks will be preferred for income-seeking investors such as retirees. High dividend stocks are also signs of a shareholder-friendly company. Perhaps the most compelling validation for the importance of dividends is that a large component of the historical total return of equity securities has been dividend payments. Tweedy, Browne Worldwide High Dividend Yield Value Fund. The difference is substantial.

This underscores the importance of dividend payments in a holistic equity investment strategy. To conclude, dividends are important because they are the only way for an investor to realize profits from an equity investment without reducing or eliminating their stake in the underlying company. Dividends are also correlated with superior returns on both an absolute basis and a risk-adjusted basis. Luckily, there are plenty of high-quality businesses that fall outside of the universe of stocks contained in the High Dividend Stocks Spreadsheet.

You could certainly find a stock with a 4. Fortunately, there are many other filters that investors can use to find high quality businesses. One of our favorites is to look for companies with a long operating history, and a long history of increasing their dividends to shareholders.

best us dividend stocks to buy

The following databases cover these types of companies in detail. Sure Dividend has analyzed the dividend portfolios of the following high-profile investors in detail:.

The Best High Dividend Stocks: Companies With 5%+ Dividend Yields - Sure Dividend Sure Dividend

Non-dividend holdings of exceptional investors can sometimes make attractive investments as well. Updated on June 9th, As dividend growth investors age, they naturally experience a paradigm shift with regards to their investment goals. The downloadable High Dividend Stocks Spreadsheet below contains the following for each stock in the universe:

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