dividend stocks

How to Evaluate Dividend Stocks?

1. Dividend Yield: Assess the yield to ensure it aligns with your investment goals.
2. Payout Ratio: The payout ratio measures the proportion of earnings paid out as dividends. A lower payout ratio may indicate that the dividend is sustainable.
3. Dividend History: Look for companies with a consistent history of paying and increasing dividends.
4. Earnings Stability: Evaluate the company's earnings stability and growth prospects to gauge the sustainability of dividends.

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