I would like to invest in a dividend-paying stock. How can I find out which stocks pay dividends?

By Richard Loth AAA
A:

There are several accessible sources to help investors identify dividend-paying stocks. Here are a few we can recommend:

  • Generally, your local newspaper will only provide an abbreviated quote in its listing of stocks on the various exchanges. This type of quote will most likely not indicate whether the stock pays a dividend - look for captions such as "Div" or "Yld". Even the Wall Street Journal, in its Monday-Friday editions, is now only providing price information. However, in its Saturday edition, the stock quotes carry a "YLD" caption. If a stock entry has a number in this column, it's paying a dividend and the number is the annualized percentage rate. (For related reading, see Reading Financial Tables.)
  • The weekly updates of the well-known Value Line Investment Survey have three tables that will interest dividend investors: "Highest Dividend Yielding Stocks", "Highest Dividend Yielding Non-Utility Stocks" and "Stocks With Highest Projected 3-5 Year Dividend Yield". Each of these tables lists about 100 stocks. They can be found at the back of Part 1, the "Summary & Index", and are a component of both the online and print editions. Most public libraries in the U.S. carry the Value Line Investment Survey, which is a paid subscription service, in their reference sections.
  • You can obtain, free of charge, a list of 800 dividend-paying stocks from Harry Domash's Dividend Detective, an online newsletter that has both free and paid subscription content.
  • If you're interested in professional investment guidance for dividend investing, these three monthly (paid subscription) newsletters are worth checking out through their websites:

To learn more about this topic, see Dividend Fact You May Not Know and The Power of Dividend Growth.

RELATED FAQS

  1. What causes dividends per share to increase?

    Learn what the major factors are that can lead to changes in a company's dividend payouts and drive increases in dividends ...
  2. What are some ways to increase your disposable income?

    Learn what disposable income is and how you can increase your disposable income by working a second job, starting a small ...
  3. What are the main advantages of fixed income securities?

    Learn why the addition of fixed income securities are common among investors who are attempting to limit their exposure to ...
  4. What kinds of companies are the best candidates for evaluation using the Gordon Growth ...

    Learn what the Gordon growth model is, how it's used to value a company and what candidates are best suited for evaluation ...
RELATED TERMS
  1. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Target Payout Ratio

    A target payout ratio is a measure of what size a company's dividends ...
  3. Policyholder Dividend Ratio

    The policyholder dividend ratio is a measurement of the profitability ...
  4. Paid-Up Additional Insurance

    Additional whole life insurance that a policyholder purchases ...
  5. Accelerated Dividend

    Special dividends paid by a company ahead of an imminent change ...
  6. Sucker Yield

    When an investor has essentially risked all of his capital for ...

You May Also Like

Related Articles
  1. Stock Analysis

    Is This Dividend Stock A Value Or Value ...

  2. Stock Analysis

    Is Intel's Newly Raised Dividend At ...

  3. Stock Analysis

    Is This High-Yielding Dividend Stock ...

  4. Stock Analysis

    Frontier Communications: Have Shorts ...

  5. Stock Analysis

    What Makes LinnCo Different From MLPs?

Trading Center