How to buy Stocks for Dividends to earn Profit

Many of the traders have an separate special interest and investment shown in delivery based positional calls for many reasons. Like the way short term calls and long term calls may be there to give very good results with regular dividends sharing with their investors in regular interval financial result announcements. Dividend is nothing but part of the profit seen by the company which is being shared after income with their investors every year. But there are no compulsions to companies to provide dividends every year.

It is their own wish and they can decide how much profit percentage can be share as dividend with their investors. But many smart investors now a days take positional for particularly for dividends paid which is very high when comparing banks fixed deposit and simultaneously the growth of stock price is a big advantage with that. Investors can see two benefits from one single investment.


Image Credit –┬á

Finding the best stocks that pay dividends requires research and patience. Anyone can simply invest in the highest yielding securities blindly based only on the current payout. That investment strategy, however, will eventually cost the investor a lot of lost earnings and time. Searching for the best quality companies is a safer and more stable option for the long term investor. So how can an investor find the best dividend paying stocks? 3 Ways to Find Stocks that Pay Dividends

List of Dividend Paying Stocks

There are many websites and possible ways like newspapers that publish lists of dividend paying stocks that offer some good investment ideas. For example, the S&P 500 Dividend Aristocrat list is published once per year which contains stocks with a strong history of dividend increases. A company must have raised their annual dividend distribution consistently for at least 25 years, which the analysis says.

Stock Price Screening

The best dividend stocks can be filtered out by identifying a set of criteria to look for. Most online brokers and financial websites offer stock screen tools that can be used to make easier the search for stocks that pay dividends. Income investors typically set their criteria using data like dividend yield, dividend payout ratio, P/E ratio, etc to analyse high dividend paid stocks.

Financial Websites and Blogs

There are many places to look for dividend paying stocks on the internet. The blogging websites offers several different options and analysis which can help investors identify potential opportunities to invest for dividends. Just remember that most of these sites offer biased opinions on investments, so due diligence and self analysis is better required to take our won decision. But majority of the times opinions given never fails.

Leave a Reply

Your email address will not be published. Required fields are marked *