How to Find Great Dividend Stocks - My Personal Dividend Screen & Process | Summary and Q&A

TL;DR

This video provides a dividend screening process using financial statement ratios to identify stable dividend stocks with the potential for growth.

Key Insights

• ⌛ The focus is on finding stable dividend stocks that can increase their dividends over time.
• 🥳 Financial ratios like return on equity, debt to equity, and dividend payout ratio are essential in assessing a company's ability to sustain and grow dividends.
• 👋 Inverting the analysis process by looking for reasons not to invest in a company can help identify the best dividend stocks.
• 🔨 The CNBC stock screening tool provides several customizable criteria for identifying potential dividend stocks.
• 👂 Researching each company and considering industry exposure can further narrow down the list of dividend stocks.
• 🫵 The video invites viewers to suggest additional criteria and companies for further analysis.
• 🛄 The screening process aims to identify efficient companies with a decent dividend yield and potential for dividend growth.

Transcript

Hey YouTube. I'm Jimmy in this video we're going to go through how to find great dividend stocks. We're going to look quickly at the dividend screening process that I use. It includes some financial statement ratios that I think are helpful in identifying companies that have the ability to cover their dividend maybe increase it and ideally keep gro... Read More

Questions & Answers

Q: Why is it important to find stable dividend stocks?

Stable dividend stocks provide consistent income for investors, and companies that can consistently increase their dividends often have strong financials and growth potential.

Q: How does the return on equity (ROE) ratio impact the selection of dividend stocks?

ROE measures a company's efficiency in generating profits from shareholder equity. A higher ROE generally indicates better management efficiency. Setting a higher ROE criteria helps narrow down the list to companies with strong financial performance.

Q: What is the significance of the debt to equity ratio in dividend stock selection?

The debt to equity ratio shows the proportion of a company's financing that comes from debt relative to shareholder equity. Lower debt indicates financial strength and reduces the risk of dividend cuts. A lower industry percentile for debt to equity is preferred.

Q: How does the dividend payout ratio factor into the selection process?

The dividend payout ratio measures the proportion of a company's earnings that are paid out as dividends. A lower payout ratio implies that the company has more room to sustain and grow its dividend. A threshold of less than 60% is used to identify companies with a healthier dividend policy.

Summary & Key Takeaways

• The goal is to find stable dividend stocks that can continue to increase their dividends, not necessarily the highest paying ones.

• The video demonstrates the CNBC stock screening tool to narrow down a list of potential dividend stocks based on criteria such as return on equity, debt to equity, dividend yield, dividend payout ratio, and five-year dividend growth rate.

• The process involves inversely analyzing each company and crossing off the ones with the most potential issues, resulting in a list of potentially good dividend stocks.