Dividend stocks are considered a great choice for several reasons, and their appeal lies in the combination of income generation, stability, and potential for long-term wealth accumulation.
What are Dividend Stocks?
Dividend stocks are shares of publicly traded companies that distribute a portion of their earnings to shareholders in the form of dividends.
A dividend is a payment made by a corporation to its shareholders as a way to share profits with investors. These dividends are typically paid on a regular basis, often quarterly, and are usually expressed as a certain amount per share. This percentage is called Dividend Yield.
10 high-dividend stocks by Dividend Stock Screener
Prometeus Stock Screener scanned the global stock market in each sector, in each industry of every country to find the best dividend stocks by yield and growth.
We asked for stocks having paid more than 5% of dividend yield for 10 consecutive years; moreover, we also wanted to find which of these companies have never decreased their dividend in 10 years.
Here the first 10 results provided by Prometeus:
As we can see there are stocks of different sectors/industries and countries and all dividend yields are above 7%.
Take a look of the top 3 stocks by Dividend Yield
Here is the summary of Prometeus Stock Screener results ordered by Dividend Yield and linked to the platform for further analysis.
Ticker | Company Name | Dividend Yield |
Fiera Capital Corporation | 15.64% | |
Gibson Energy Inc. | 10.12% | |
One Liberty Properties Inc. | 9.77% | |
Enagàs S.A. | 9.18% | |
Altria Group | 8.90% | |
CITIC Telecom International Holdings Ltd | 8.90% | |
Juniata Valley Financial Corp. | 7.93% | |
JLS Co. Ltd. | 7.77% | |
BCE Inc | 7.64% | |
Gibson Energy Inc. | 7.47% |
Fiera Capital Corporation - FSZ.TO
Fiera Capital Corporation is a Canadian company belonging to the Asset Management industry which compared to its peers is well positioned in terms of Dividend and Growth, as we can see from the radar chart in the overview.
Its Dividend Yield has been constantly overperforming its peers with an average performance of 9% and the Trailing-Twelve-Month Dividend (Dividend TTM) never decreased since 2009. These features made the dividend stock screener to find this stock.
However, this performance is paid in terms of a volatile - and sometimes even negative! - Payout Ratio, meaning that more than once the paid dividend exceeded the Income of that year.
Anyway, Fiera Capital Corporation has been definitely growing in Revenue over the past years. This led it to have a good score on the Radar Chart and to rank as the 7th over 35 most similar company in terms of Revenue.
Problems come when looking at its Net Income which has been volatile and low, leading to an even more volatile Payout Ratio. Fiera ranks 30th over 35 peers with a very narrow margin and a really poor score on the Profitability axis of the Radar Chart.
Gibson Energy Inc. - GBNXF.US
The dividend stock screener found another Canadian company belonging to the Energy sector. In this case, we have a regular radar chart with a spike on the Dividend axis.
Moving to the Company Dividends tab in the Stock Analysis, we see a very high dividend yield from Gibson Energy Inc. that has been constantly above its peers' average except for 2020 and 2021.
The Trailing-Twelve-Month Dividend (Dividend TTM) never decreased since 2012 and only went flat from 2017 and 2019.
As in the previous case of Fiera Capital Corporation, Gibson Energy Inc. has had a volatile Payout Ratio due to its narrow margin, whereas the Revenue Growth has been pretty in line with its peers.
One Liberty Properties Inc. - OLP.US
The third company found by Prometeus Stock Screener is a Real Estate Investment Trust (REIT) from USA. One Liberty Properties shows a regular Radar Chart with a great spike on the Dividend axis that bodes well. Let's go deep inside its dividend analysis.
The great Dividend Yield of OLP followed the trend of its 35 peers but was much more amplified. The 10-year average is around an amazing 11% and the Dividend Yield has never fallen below the peers' average.
The Trailing-Twelve-Month Dividend (Dividend TTM) has been rising from 2010 to 2018 and then gone flat till nowadays.
The Payout Ratio has always been positive - meaning that the Net Income has never gone negative - but also overcame 100% more than once.
The growth of One Liberty Properties has been good and in line with peers both for Revenue and Net Income as its ranks show with a 12th position over 35.
Conclusion
Dividend stocks are a really interesting option when it comes to investing. However, investors should not concentrate on the Dividend Yield only but they should understand whether the dividend is sustainable by the underlying business instead.
Anyway, there are many other great dividend stocks out there that can be found via the Stock Screener and then analyzed through Prometeus, e.g. the well-known Altria Group.
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