These five tips will tell you how to find stocks that payout dividends
Individual Stock Brokerage Account
A great place to start your search for stocks that pay out dividends is through a brokerage account. A brokerage account invests in securities such as stocks, mutual funds, ETFs, and bonds. Brokerage accounts provide information and pricing on individual stocks. The information you can find through a brokerage account is the amount a dividend pays per year, and what the dividend yield is for that stock.
The money in your brokerage account or investments is all yours to buy and sell anytime. The brokerage account with your broker acts as an intermediary. Be aware that some broker accounts charge minimal fees while others do not.
Note: You may buy stocks before the funds deposited into your brokerage account clear. If you sell before those funds clear, you will be in a tolerance violation. Dividend investing should be a long-term investment anyways.
Dividend Tracker Websites & Apps
Websites and mobile apps are another great way to determine which stocks payout dividends. Not only that, but dividend trackers also help you manage your dividend portfolio. You can find everything from news about a specific company to dividend calculators.
Another benefit of dividend tracking sites and apps is the stock screener tools provided. Several sites and apps offer this for free. Stock screener tools allow you to sort through several stocks simultaneously. You can filter down your stock searches to fit your criteria. Whether you are looking for earnings per share (EPS) or return on investments (ROI), filtering out stocks quickly to focus on what you want to invest in is fantastic.
Stock exchanges will also help you find individual stocks that payout dividends. The New York Stock Exchange (NYSE) provides historical data. This historical data can be used to see when dividends are paid out.
Not only do you get historical data, but you will also get current data with continuous updates for investors. For example, you can see the current dividend stocks with the highest ROI.
The NASDAQ is another highly recommended stock exchange that you can use to screen the highest-yielding dividend stocks. The NASDAQ does have a free dividend calendar that you can utilize to see when dividends are paid out.
Securities and Exchange Commission (SEC) Website
The SEC requires any company that is publicly traded to report all dividends paid to investors from the previous tax year through a 1099 form. These reports are done quarterly and annually and can be researched using the EDGAR system.
Using forms 10-K and 10-Q, you can search the financial and operational details of said companies you are interested in investing in. Warren Buffett has stated that he likes to review the full financials of a company before investing in them. He also has a book that helps you interpret company financial statements. I highly recommend reading it if you are unsure what to look for or how to read a piece of financial information.
Dividend-Focused Providers (Specialty Providers)
The final tip for how to find individual stocks that provide dividend payouts are dividend-focused providers. These providers offer information and resources focused on dividend investing.
The reason for putting this last on the list is that not all providers offer their resources for free. You may be required to pay for a subscription service to access a particular provider’s tools and resources.
However, investing in a subscription service for a dividend-focused provider can pay off by helping you increase your ROI and filtering out stocks that don’t fit your investment criteria.
Bonus: If all else fails and you are still uncertain about which dividend stocks to invest in, you can always speak with a financial advisor. The biggest con to a financial advisor is the cost of working with them.
But the benefits can outweigh the cons if your ROI is high enough. A financial advisor can also provide the knowledge you may not be aware of when investing in a dividend stock.