-
Step 1
Run a internet search looking for ETF's that specialize in stocks that pay dividends. There are plenty of these exchange traded funds that specialize in high yielding stocks that can be reviewed as part of this exercise. You can also look for ETF dividend paying stocks by reviewing blogs and websites that specialize in providing dividend analysis on stocks.
-
Step 2
Take an identified ETF dividend paying stock from step #1 and begin reviewing the top holdings of the fund. Since you are searching for ETF's that specialize in securities with high yields, the top holdings should identify a list of high quality stocks that pay dividends. Most online financial websites should be able to provide this information for FREE. You can also check with your online discount broker for the top holdings of an ETF.
-
Step 3
Continue to identify the top holdings of each ETF that you plan to analyze. The more ETF dividend paying stocks you analyze, the better your results will be. When you have completed the analysis, combine the holdings into a consolidated list to identify similarities of stocks that pay dividends between funds.
-
Step 4
Track anytime you come across a duplicate stock found as a top holding in multiple ETF's. This is a good sign of a dividend paying stocks fundamentals and should be investigated further. Make a note in your list of the number of times you found a duplicate stock on multiple ETF's. These stocks that pay dividends should be the first place you start looking to invest in.
-
Step 5
Use your list of stocks that pay dividends to conduct additional analysis on your own. Always be sure to follow up with your own research once you have compiled a list of dividend paying stocks. Using other sources to identify lists of dividend stocks can be a huge time saver in your analysis and can back up other decisions. Just make sure that it is not your only decision making criteria for picking a stock.
