► High (current – 1-3-5 year) dividend yield coupled with a low dividend payout ratio – For sustainability of dividend payouts in future.
► Dividend payout Ratio of less than 40%.
► Companies are well established with a strong financial history.
► Stock prices have fallen either due to temporary business setbacks or unnecessary pessimism.
Read More about our Stock Selection Criteria and Investing for Dividend Income:
- Super 6 Dividend Income Stocks
- Dividend Payout Ratio
- High Dividend Yield Stocks in India
- Record Date vs Ex Dividend Date
While it is easy to pick up the top 10 (or top 50 or 100) dividend paying companies based on the current or historic dividend yield, the challenge is in finding companies which will sustain or increase their dividend yields in future.
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