Stocks With A Perfect Dividend Payout Ratio
Published Jul 10, 2020 on Seeking Alpha

Seeking AlphaDividend Quick PicksStocks With A Perfect Dividend Payout RatioJul. 10, 2020 9:29 AM ET|| Includes: ADM, AOS, AROW, ATO, BEN, CAT, CATC, CBU, CFR, CHRW, CTBI, EMR, EV, FLIC, ITW, LECO, MDU, MGEE, MGRC, NUS, NWFL, PBCT, PII, RTX, SJM, SON, TDS, TGT, TMP, TROW, WABC, WBA, WEYSby: Dividend DiplomatsDividend Diplomats Large-cap, dividend investing, dividend growth investing, valueDividend Diplomats .cls-1{fill:#024999;}SummaryThe dividend payout ratio is one of the most critical investing metrics for dividend growth investors.
However, during the coronavirus pandemic, too many companies have cut their dividend due to their earnings per share suddenly falling off a cliff.
When screening for stocks using our dividend stock screener, we look for stocks with a payout ratio less than 60%.
Nothing makes me happier than a fundamentally strong dividend growth stock (except for my daughter). Reviewing a company's dividend payout ratio is critical to determining the strength of a company's dividend. Over the years, we have figured out the percent range that we consider perfect for the metric. In this article, we will explain the dividend payout ratio, why it is such an important metric, discuss the perfect payout ratio, and create a list of companies that have a perfect payout ratio.
Dividend Payout Ratio - Why is it so important? The dividend payout ratio is one of the most critical investing metrics for dividend growth investors. In fact, the payout ratio is such a critical metric, it is the second metric of the infamous Dividend Diplomats' Dividend Stock Screener. The dividend payout ratio calculates the percentage of a company's earnings that are paid to shareholders as dividends. The dividend payout ratio is very simple. It is calculated as follows: Dividends Per Share/Earnings Per Share. To demonstrate, if a company pays an annual dividend of $4.00 per share and earns $10.00 per share during the year, their dividend payout ratio is 40%.
The metric helps... Read more