- A company that constantly gives out 5% of dividend yield, most probably have a price to book ratio of more than 1. A stock that has a price to book ratio of less than 1 and also have a dividend yield of more than 5% per year, MAYBE lacking in other parts of its financials. More due diligence is required.
- SOME stocks uses leverage to support their high dividend yield. Their debt to equity can be more than 100%. But how long can they continue to do this? ...
I have started on my research on past stock data - in order to find the criteria to "sniff" out the Dividend Stocks.
I am not talking about REITs or Business Trust or even Blue Chips. I am talking about finding the pennies that can give you hopefully at least 5% of dividend yield every year.
My initial research shows: