What criteria should be considered for dividend stocks?

Hello stockbrokers,

In today's article, I would like to briefly show you five criteria for selecting dividend stocks, using Pepsi as an example.

1: Dividend yield

2: Dividend growth

3: Dividend continuity

4: Payout ratio

5: Earnings growth

There are numerous metrics you should look at when choosing stocks, which is why I'm only looking at a portion of dividend analysis in this post.

💨The Dividend Yield (Dividend - Price - Ratio) is a percentage of the annual dividend payments in relation to the share price.

This ratio helps you choose your stocks, depending on your strategy the dividend yield depending on your strategy.

In the case of Pepsi, the dividend yield is 2.66%. Thus, you currently get 2.66% of the share price. The current price of Pepsi is 175 €, so you get an annual dividend of 4.60 €.

💨The dividend growth is relevant because it shows the extent to which the dividend has grown in the past. grown in the past. This key figure is relevant if you want to build up a high cash flow in the long term and want to rely on dividend growth in order to receive higher payouts in the long term.

In the case of Pepsi, the dividend growth rate has averaged 7.69% over the last 10 years.

💨The dividend continuity indicates how continuously a company pays out its dividends, and here it is important to ensure that the company's distributions are as constant as possible and as independent of crises as possible.

In addition, there is also the Dividend Aristocratsthis "rank" is given to companies that have been continuously continuously increase their dividends for 25 years.

Pepsi's dividend continuity is 35 years.

💨The payout ratio indicates the percentage of the free cash flow is distributed with the aid of a dividend. To obtain the payout ratio, the dividend per share is Dividend per share divided by earnings per share. If a company has a high dividend payout ratio, which is is greater than 70 this is often negative, as little is invested in growth. (This can be relativized depending on the industry).

Pepsi's current payout ratio is 93%.

💨Lastly, there is the metric "Earnings Growth"This is very relevant to look at in order to see whether the dividend can be paid sustainably on the one hand, and whether the dividend growth in the past also in the future is still possible.

At Pepsi, the average earnings growth is 8%, so it is poised for the future.

What criteria do you look for when choosing your dividend? And what is your favorite dividend stock?

#aktienfoxx
#dividende
#dividenden
#aktien
#investieren
#krypto
#reichvondividenden