Introducing "Stocks For Dividend Seekers"

Some times, companies with strong operations and enough cash at hand share their success with their shareholders in the form of a dividend. Many investors use dividend payout as a source of side income or reinvest the money to grow their investments. But not every dividend-payer is worth investing in. In the latest addition to Stock Card's collections, we looked for true dividend-payer stocks that are worthy of every dividend seeker's attention.

Launching Stock Card's "Stocks For Dividend-Seekers" collection

We started the process by looking for stable dividend-paying companies using market capitalization, beta, and dividend yield:

• The market capitalization of > $1 billion - To avoid smaller companies that have more volatile stocks.
• Beta (a measure of volatility) is < 1.5 - To make sure dividend doesn't come with wild volatility.
• Dividend yield is > 0.5% - This is a very low bar. However, it is needed to weed out those companies whose dividend yield is negligible.

Using those filters, we narrowed the list to 1,408 publicly-traded stocks. The next step in the process was to focus on TRUE dividend-paying stocks. What does a true dividend-payer stock mean?

Not every dividend-paying stock is worth your attention!

Finding reliable dividend-paying stocks is not just about searching for companies that pay a dividend. You also need to weed out those companies that cannot sustain their dividend payout and focus on those that have a reliable history of growing their dividend yield. We added a comprehensive list of criteria to our research to find the true dividend-paying stocks, including a few critical ones:

• Dividend per share growth > 1% in the last 1, 3, and 6 years
• Payout ratio < 75% - Healthy dividend-paying companies fund their dividends from their earnings and leave some money to reinvest in the company. Note that this criteria tend to filter out many REITs that have a higher payout ratio due to their accounting practices.
• Financial debt to EBITDA ratio < 3 and > 0 - To make sure the company's financial debt is manageable, and it has a rather easy path to pay off its debt without crumbling under the debt pressure.​

Final results

The result of the above analysis was a new set of 91 true dividend-paying stocks. We added them to Stock Card's collections, and you can access them for free by typing "Stocks for Dividend Seekers" in the search box on our website. Log in and check the list:

Get the list of true dividend-paying stocks

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A few of us at Stock Card are dividend investors, and share our portfolios with our users. This portfolio is for those of us who prefer to keep over-excitement in other parts of life and not in our investments! Visit Stock Card's Dividend-Seeker portfolio today.

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