Dividend Stock Screeners Guide – Find High Yield Investments Fast

In today’s crazy investment world dividend paying stocks are a core strategy for investors looking for steady income and potential capital growth. Dividend stock screeners have become a must have tool for both new and experienced investors, to find dividend paying companies that meet your specific investment criteria. These powerful tools allow you to sift through thousands of stocks, filtering them by yield, payout ratio, dividend growth and financial stability. Knowing how to use these screeners can supercharge your dividend investing and help you build a income generating portfolio.

dividend stock screeners

What are Dividend Stock Screeners and What are the Key Features?

Dividend stock screeners are great to filter through thousands of publicly traded companies based on dividend related criteria. Let’s say to invest in U.S.-listed stocks only, what do you think how many stocks are listed on NYSE and Nasdaq? Over 8,000! That’s why dividend stock screeners are a great little helper.

These tools include basic metrics such as dividend yield which is the percentage return of dividend payments to share price and dividend growth rate which is the rate of increase of dividend payments over time. Advanced screeners also include financial health metrics like payout ratio which helps to assess dividend sustainability and free cash flow coverage which measures a company’s ability to pay dividends.

Most tools also include fundamental analysis metrics like market capitalization, P/E ratio and debt to equity ratios so you can evaluate both dividend characteristics and overall company health. The best screeners allow you to customize the parameters so you can set specific thresholds for each metric and create your own screening criteria that matches your investment goals and risk tolerance.

Dividend Stock Screen Criteria

When using dividend stock screens, you want to get the right combination of criteria. Start with dividend yield but don’t just chase the highest yields as very high yields can be a sign of problems. Look for companies with yields between 2% and 6% which is a sign of a balance between income and growth. Pay attention to the dividend payout ratio, ideally below 75% for most industries as this means room for future dividend growth and financial flexibility.

Dividend growth history is another key factor; companies with 5-10 years of increasing dividends show good financial management and shareholder commitment. Look at market cap and trading volume to make sure it’s liquid, usually mid to large cap stocks with average daily volume above 100,000 shares. Financial stability metrics like debt to equity ratio, profit margins and free cash flow coverage should also be included in your screen criteria to find companies with good fundamentals supporting their dividend.

Dividend Screening Strategies

Dividend screening works best if you use a systematic approach. You can combine multiple screens (maybe even from multiple tools) to adapt to changing market conditions with the aim to get the best results. Start with a baseline screen of dividend paying stocks that includes your non-negotiables, such as minimum yield requirements and dividend growth history.

Since it is a multi-step approach, then add in additional screens based on sector specific considerations as the acceptable metrics can vary greatly across industries. For example utilities and REITs have higher payout ratios than technology companies. Monthly or quarterly screens will help you find new opportunities and monitor existing holdings. Keep a record of your screen results and investment decisions to refine your criteria over time based on performance.

Consider having multiple screens for different market conditions or investment goals, such as one for high current yield and one for dividend growth. Supplement your screens with fundamental research, reading company reports, analyzing industry trends and evaluating management’s commitment to paying and growing dividends.

Here are the 5 best dividend stock screeners:

  • FINVIZ Elite Intuitive interface, powerful visualization tools. Advanced technical analysis and dividend metrics. Screens for dividend stocks through both technical and fundamental parameters. ► Finviz Review
  • Seeking Alpha Stock Screener Dividend metrics, real-time alerts, crowdsourced analysis. Strengths: combines quantitative data with qualitative insights from the contributor network and proprietary dividend grades.
  • Yahoo Finance Stock Screener Free, user-friendly. Solid dividend screening capabilities, historical dividend data. Great for beginners due to simple interface and integration with Yahoo’s financial data.
  • Dividend.com Screener Designed for dividend investors. Proprietary ratings like DARS (Dividend Advantage Rating System). Exclusive dividend research, ex-dividend dates, payout histories.
  • Charles Schwab Stock Screener Institutional-grade screening with over 140 filters. Combines fundamental analysis tools with excellent dividend criteria and real-time market data.

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