Investors who want to increase their income through dividend-paying stocks may appreciate help in narrowing their choices. Most brokerage firms will offer pre-screened lists of stocks or self-guided tools to screen for stocks based on dividend yield. If you are looking for even more data and analysis, consider a site that has made dividend-paying stocks its sole focus. The sites selected below offer a crash course on dividend investing, and news, picks, and discussion.
Before considering dividend investing, you should understand that companies never guarantee dividends. Stock prices can rise and fall. Your investment is not guaranteed and may lose value. When screening dividend-paying stocks, consider all factors about them—not just high yield—because the higher the potential yield, the higher the potential risk.
Dividend.com provides comprehensive information about dividend investing and promotes its Dividend Advantage Rating System. They use this system to rate and analyze 1,600 stocks according to five criteria:
- Relative strength
- Overall yield attractiveness
- Dividend reliability
- Dividend uptrend
- Earnings growth.
The site's articles are frequently published and address news as well as more general topics.
In addition to free content, including stock recommendations, strategy explainers, tools, calculators, and advice, Dividend.com offers a newsletter and a premium service for paying members.
Investors looking to bone up on strategy or research specific stocks will find a lot of information to help them on this thorough site, although some content is flagged for premium members only.
Dividend Investor states that its mission is to "provide the most accurate and insightful dividend information available on the internet, and in a manner free from bias or personal interest."
The site provides detailed dividend data for the casual visitor, which you can find by searching by ticker symbol. It also offers a few free tools like the dividend growth calculator. To use its ex-dividend calendar, Dividend Scorecard, 20-year rolling history of dividend data, and other premium features, you'll need to pay a monthly or annual fee. Premium content is updated five times a day, which some investors may find is plenty.
Dividend Investor also publishes articles on its homepage, informing investors with topics such as highlighting companies going ex-dividend in upcoming weeks or identifying companies that pay monthly dividends.
Some dividend investors may find The Dividend Detective's homepage design a little dated. Still, it separates free content from premium content, making it more usable and effective than other dividend sites that make you drill down in a menu before discovering the information you want is behind a paywall.
The Dividend Detective's home page offers plenty of useful, free content to educate investors who are new to dividend investing. This free content includes information on preferred stocks, closed-end funds, REITs, and Canadian stocks, as well as content on U.S.-based high-dividend stocks. Basic training and advanced tutorials will explain terms and investing strategies.
The site's premium content includes breaking news and model portfolios, which could be useful for investors looking for a little more hand-holding.
The Dividend Growth Investor is a blog offering insightful commentary and free educational information on high-dividend stocks. The site's author shares investing strategy in detail, and resources for further education and explainers on terms and techniques.
Spurred by investors eager to learn more about strategies for growing dividend income, The Dividend Growth Investor also offers a newsletter documenting building a portfolio from scratch and showing the gains over time using their system. Investors interested in seeing real-time progress may find it a useful addition to their inbox.
Most of the content on Dividend Stocks Online is restricted to its paying members. The site does share a list of stocks that pay monthly dividends and shows stock ex-dividend dates by month, but for other key data in its charts, you'll have to pay to join.
Members have access to lists of pre-screened dividend-paying stocks, high yield stock ratings, high yield REITs and other stocks. Premium content is updated once per month, which may not suit investors hungry for the latest information.
Frequently Asked Questions (FAQs)
How do you calculate a stock's dividend yield?
To calculate a stock's dividend yield, you divide the dividend payment by the price of the stock. Dividend yields are typically measured annually, so if a stock pays a quarterly dividend, you would multiply a quarterly dividend by four to get the annual rate. For example, if a $100 pays a $0.25 dividend each quarter, that's a 1% annual dividend yield (0.25 x 4 = 1 and 1 / 100 = 0.01).
What is a good dividend yield for a stock?
To get a sense of what a "good" dividend yield would be, you can look at the dividend distribution for a relevant index. For example, if you're analyzing a stock that's included in the S&P 500, and it yields more than an ETF that tracks the S&P 500, then that stock has a better-than-average yield. Keep in mind that higher yields can come with more risk.