Dividend Paying Stocks

Dreaming of passive income that grows over time? Dividend stocks might be your answer. These stocks offer regular cash payouts, turning your investments into a steady income stream. Whether you are saving for retirement or simply looking to boost your monthly income, understanding dividend stocks is key. Let's understand how dividend stocks work and the factors to consider when picking these stocks for your portfolio. Before going into more detail, let’s first discuss how dividend stocks work. Normally when a company earns profit it reinvests the money into business growth or distributes a portion of it to shareholders as dividends. Dividend paying companies usually acquire stable business models and generate consistent cash flows. This nature of these stocks attracts investors towards it as they can offer a steady income stream. Now let’s understand the factors to consider before choosing dividend stocks. The first thing you need to focus on is dividend yield. Check the annual dividend per share dividend by the stock price. Remember a higher yield indicates a larger dividend relative to the stock’s cost. The next thing you must check is the dividend payout ratio. This usually measures the proportion of earnings paid out as dividends. A balanced payout ratio ensures the company can easily pay dividends frequently without compromising its growth. Finally, check the company fundamentals, which are one of the most crucial factors you need to consider. Analyze the company’s financial health, competitive position and industry before investing in dividend paying stocks. Finding potential dividend paying stocks is always challenging and needs market analysis but don’t worry, FindScan screener is there to help you. This is a reliable screener which allows you to set all required attributes like dividend payout ratio, growth percentage, market capitalization, P/E ratio, ROE and provides you the best screened list of dividend stocks according to your investment requirements. The user-friendly and simple interface of this screener makes it suitable for newbies and seasoned investors. Try this screener today and experience its useful features to find valuable stocks for your portfolio.