5 High-Yielding Dividend Stocks With A Low Payout Ratio

The payout ratio is the percentage of a company's earnings paid out to investors as cash dividends. The lower is the payout ratio, the more secure is the dividend because smaller dividends are easier to pay out than larger dividends. I have searched for very profitable companies that pay rich dividends and have a low payout ratio. This kind of stock offers limited downside and provides a very nice income. I have elaborated a screening method, which shows stock candidates following these lines. Nonetheless, the screening method should only serve as a basis for further research. The screen's formula requires all stocks to comply with all of the following criteria: 1. Trailing P/E is less than 10. 2. The PEG Ratio is less than 1.00. 3. Price to free cash flow is positive. 4. Average annual earnings growth estimates for the next five years is greater than 10%. 5.... Read more