How to Identify High Paying Dividend Stocks

With the right stock, dividends can be a great feature.

Dividends are payments made by a company to its shareholders. When profits are made, the company can either re-invest in the business, or it can be paid to the shareholders as a dividend.

Dividends can be paid out in the form of cash, or in some cases reinvested as additional shares for the shareholder.

But where are these dividends? And who's has the best ones?

Difficulty: Moderate

Instructions

Things You'll Need:

• Computer
• Internet Access
• Brokerage Account
• Some money to invest

1. Figure out your investment budget. This is something I live by. It doesn't take a ton of money for an investment to pay off. And a high priced stock may look nice, but if you can't invest in enough shares, it won't do a thing for you. Know your budget. Know your boundaries.

2. So where do we find these dividends?
   
   You can either surf the net for a stock screener (There are plenty of free ones out there) or you can go right into your Brokerage account and if they're doin' anything with those lovely fees you pay them, they should have a screener right there for you. I personally use E*TRADE's stock screener. It fits the micro stocks I'm interested in, and is fairly user-friendly.

3. 
   Dividend Search

   Here is a shot of E*TRADE's options for filtering through dividends on stocks. In the screener, just input the criteria you'd like for your stock to meet and take a look around.

4. For further tips / suggestions on finding the right stocks, refer to the article below "How To Find the Right Stocks for Your Budget".

5. Don't forget to rate and comment on this article!

Tips & Warnings

• Know your budget! Don't invest what you're not willing to lose.
• Diversify! Spread out your investments in different areas. If you can't afford to spread out your investments, then you need to look at smaller cost investments.
• Check out the Wikipedia link below for more details on how Dividends work.
• Invest at your own risk! There are no guarantees.
• DO YOUR RESEARCH ON EVERY COMPANY YOU INVEST IN! There's a line between investing and gambling.

Resources

• How To Find the Right Stocks for Your Budget
• E*TRADE
• Dividend - Wikipedia, the free encyclopedia