Dividend investing focuses on companies that regularly pay part of their profit to shareholders in cash. Investors use it for a steady income and because companies able to pay - and raise - dividends year after year are often mature, profitable businesses.
What to look at
The dividend yield (yearly dividend divided by the share price), the payout ratio (the share of profit paid out), whether free cash flow covers the dividend, and how long the company has kept paying or raising it.
A high yield can be a warning
A yield far above similar companies often means the share price has fallen because investors expect a cut. That is why the Steady dividend profile stops at 7 %: higher yields deserve a closer look before anything else. A one-off special dividend can also make the yield look much higher for a year.
Try it
The Steady dividend profile in the screener shows large, profitable companies with a yield between 2 % and 7 % and a calmer share price (beta of 1 or lower).
Try it in the screener
The Steady dividend profile shows large companies that pay a regular dividend. It is a learning example, not a recommendation.
Show steady dividend stocksThis content is general information, not investment advice.