Best Dividend Stocks to Watch in February 2025 | Global News Avenue

Why are these the best dividend stocks?

this Dividend Including the company traded on behalf of the company in our list Nasdaq or New York Stock Exchange The stock price is $ 5 or more, with a market value of 300 million US dollars or more, and the daily transaction volume is at least 100,000. company Payment ratio The list of negative or more than 100 % is also excluded in the list. From the remaining company library, we chose those with the highest long -term dividend yields to include it into our list. Because dividend yields have been changing Company stock priceThis list may also change rapidly. In addition, these are not the best dividend stocks ever. They represent the highest point of the list according to our method this month.

Investors are given priority to dividend stocks because they provide a stable source of passive income and enjoy the potential of future stock price growth. However, even in companies with many years of payment, dividends are not necessarily given. Investors should remember:

Market conditions will affect dividends. A wider economic environment has a significant impact on dividend payment. When you are worried that the ability to maintain operation and launch and bottom line performance due to external market factors, the company may reduce or even eliminate dividends as early protection measures. This allows them to retain capital to avoid turbulence. On the other hand, booming economies sometimes promote the company to increase their dividend payment.

The dividend output may be misleading: Paying dividend companies may increase dividend yields to attract investors, but higher dividend payment may be unsustainable. Similarly, due to the decline in the stock price, the dividend yield may be higher. This is why the payment ratio is an important indicator for monitoring dividend stocks.

How to choose dividend stocks

Powerful dividend stocks are often dividend stocks with solid fundamentals, strong profitability and sustainable companies Dividend output This has been maintained or ideal for many years.

How to find dividend stocks

In terms of paying dividend companies, not all industries and industries are the same. Finance and energy are often higher dividend payment departments than other departments, and Real Estate Investment Trust (REITs) A large part of its income must be paid to shareholders. However, for investors, it is also important to not only look at the company’s industry, but also compared to the dividend performance of other companies in the field.

What should investors look for in dividend stocks?

A dividend payment ratio (DPR)

DPR How much is the company’s income and pay to shareholders. DPR is calculated by taking the total dividend with net income, and is usually included in Agency And financial news website.

For example, if the net income reported by Company X is $ 50,000 and paid an annual dividend of $ 10,000, its DPR is 20 %, because $ 10,000 / $ 50,000 = 20 %. In other words, Company X pays 20 % of its income to shareholders each year. Under 50 % of DPRs are usually considered stable and sustainable, and may indicate long -term growth potential. A higher percentage may mean that the company has paid a high amount of dividends.

Dividend output

The dividend yield is the annual value of the dividend received by the shareholders’ value to the value of the securities per share. It can be calculated by removing annual dividends per share. Like DPR, this information is usually easy to find online.

If Company X pays a dividend of $ 5 per year, the current stock price is 100 US dollars, and its dividend yield is 5 % because $ 5 / $ 100 = 5 %. Investors sometimes start looking for dividend stocks by screening companies with a dividend yield higher than a certain percentage.

Dividend coverage

The dividend coverage rate measures the number of times the company can pay the dividend to shareholders, and is calculated by removing annual income by annual income per share.

Company X’s net income generates $ 5 million and assumes that paying a dividend of $ 1 million per year. In this case, the company’s dividend coverage rate is 5, or $ 5 million/ $ 1 million. Higher dividend coverage means that the company can pay a larger number of times according to the current income level.

In addition to these indicators, investors should also consider other fundamentals, including Earnings per share (EPS) And total return.

Bottom line

For investors who want to generate income from investment, Payment dividend company It may be a good choice. However, before investing dividend stocks, it is important to study the company’s overall financial situation. Higher dividend yields are usually considered attractive, but may be misleading, even signs of financial instability.

Investors who pursue dividend stocks may be able to invest in dividends to buy more stocks, so they use complex returns.

Regarding the comments expressed in InvestOpeDia, viewpoints and analysis are only used for information purposes. Reading us Warranty and responsibility exemption statement More information.

As of the writing of this article, the author does not have any of the above stocks.