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Dividend Yield
Use this stock screener to find the companies with the highest dividend compared to the share price .
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Investors who require a minimum stream of cash flow from their investment portfolio can secure this cash flow by investing in stocks paying relatively high, stable dividend yields. The dividend yield or the dividend-price ratio on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share, divided by the price per share. It is often expressed as a percentage.
In ValueScreeners, the rolling 12 months dividend (historic) yield is used. The screen can be combined as a starting point for locating attractive dividend stocks, with other value features (ERP5, high Piotroski Score, Price Momentum, etc).
Remarks:
- Dividend stocks are most useful when utilized as a source of stable income, preferably when the dividend payout can be counted on to grow over the years. So you should need to determine if the yield is sustainable and likely to go up in the future. For example by checking if the high yield company is also appearing in other screeners (ERP5, FCF ,etc).
- One common way to measure the sustainability of a dividend is through the payout ratio. For most financial sites, this is the amount paid out in dividends divided by net income over the past 12 months. But this is not really the best way to do it. Net income includes many non-cash items such as depreciation, stock-based compensation, goodwill and intangible asset write-downs, and even tax provisions do not reflect the true amounts of cash that are flowing into and out of the business. This is where the cash flow statement comes in. Since the cash flow statement tells us directly how much cash was produced by the business ("cash from operations"), we don't need to guess! Also, we need to subtract capital expenditures needed to maintain the business - the result is known as free cash flow. This is the best figure to use when calculating dividend payout ratio, instead of net income.
- Another remark is the fact that taxes on dividends can kill the return in certain countries, especially for foreign stocks (double taxation can be possible).