Income Ideas: 6 Rallying Dividend Stocks With Low Debt

When companies carry less debt, they’re more likely to continue paying their dividends. This is because debtholders are always paid before dividends, so lower debt payments allow more flexibility to pay a dividend. The moral of the story: If you’re looking for dividend stocks, be sure to check the company’s debt levels. We ran a screen on rallying dividend stocks – stocks paying dividend yields between 2-7% based on the latest quarter, while trading above their 20-day, 50-day, and 200-day moving averages. We also controlled for a sustainable payout ratio below 35%. Among these stocks, we then searched for those with most recent quarter total debt less than 20% of the company’s capital structure. The screen produced 6 stocks, listed below.Your browser does not support iframes.Your browser does not support iframes. We also created a price-weighted index of the stocks mentioned below, and monitored the performance of... Read more