Best Dividend Stocks Reliable Source Of Income

Best Dividend Stocks Reliable Source Of Income

The highest dividend yield stock tends to be less volatile than growth stocks. So they can also help diversify your overall portfolio and reduce risk.

How to get Dividend

Source Of Passive Income With Best-Dividend Stocks

How to Create a  Reliable Source of Passive Income with Dividend Stocks.

One of the easiest ways to create an asset is to buy stock in a publicly-traded company.

There are literally thousands upon thousands of companies that allow you to buy stock in them.

And thanks to today’s technology, if you already have an online brokerage account. You can buy stock in a company in as little as 10 seconds using your computer or even your cell phone.

Buy Low, Sell High

Even if you’ve never bought stock in a company before. I’m sure you’ve still heard the phrase “Buy Low, Sell High” at least once in your life. “Buy Low, Sell High” means that when you buy a stock. You buy it at a low price with the hopes that in the future. The stock price goes up so you can sell it for more than you paid for it, making a nice profit. That’s just one way to make money with stocks.

Example Of Some High Dividend Stocks Payout Companies.

People who own shares of stock in a company are referred to as shareholders.

Some companies distribute their earnings to their shareholders in the form of stock dividends. Companies in the USA like Amazon, Lockheed Martin, ADP, Walmart, Honeywell. Companies in India like Castrol India Ltd, Hero MotoCorp Ltd. As well as companies in Pakistan like Attock Petroleum Limited, Askari Bank, MCB, AGTL, FCCL, FFC, are some example of Best-Dividend Stocks. Such Companies all pay high dividend payout to their shareholders.

To put it simply, these companies pay you money just for owning shares of their stock.

How High Dividend Stocks Payout To Shareholders

To show you how dividends work and how they can provide passive income, let’s take a look at Verizon.

Verizon trades under the ticker symbol VZ.

At the time this article was written, Verizon’s stock price was $ 49.99 a share.

If you go to the Yahoo Finance page for Verizon, you’ll see all kinds of important statistics and information such as Market Cap, P/E Ratio, EPS, Volume, and so on.

But for the purpose of this article, we’re going to focus solely on the “Div & Yield” part. This is where you’ll see what Verizon’s current dividend is per share, and what the current dividend yield is based on the stock price.

As of this writing, the Yahoo Finance page for Verizon shows that the current dividend is $2.46. This means that over the course of a year, Verizon pays you $2.46 for every share that you own.

So if you own 1000 shares in Verizon, then you’re total dividend payments over the course of a year would be about $2460, which is $2.46 (the dividend Verizon pays shareholders) * 1000 (the number of shares you own).

Just like a stock price though, dividend yield payments do fluctuate, they can go up or down.

However, unless a company’s financial situation changes dramatically in a short period of time, dividend payment amounts don’t typically change much often.

Investing In Individual Dividend Stocks

Creating a portfolio of individual best-dividend stocks requires time and effort, making it more complicated than investing through a profitable ETF. But by choosing and selecting your lucrative stock, you have the ability to customize a portfolio and look for higher profits than ETFs.

What are Dividend and Dividend Yield 

The Best Way To Buy High Dividend Stocks:

Find Profitable Stocks.

You can select earnings-generating stocks on various financial sites as well as on your online broker’s website. We have also included a list of the main lucrative actions below.

Evaluate The Stock.

Start by looking at the bottom of a high-profit stock, comparing dividend yield to their peers. If the profitability of a company is much higher than that of similar companies, it can be a red flag. At a minimum, the company is seeking additional research and earnings protection. Worth it.

Then look at the share payment ratio, which tells you how much the company’s income is worth. The payout ratio is very high, generally over 80%, although this may vary by industry, meaning the company is paying a significant percentage of its revenue for profit. In some cases, the dividend payout ratio can exceed 100, which means that the company borrows to pay dividends.

Decide How Many Shares You Want To Buy.

If you are buying individual shares, you need diversification, so you must decide what percentage of your shares goes to each share. For example, if you are buying 20 stocks, you can put 5% of your portfolio in each one. However, if the stock is at risk, you want to buy less and spend more of your money on safer options.

Things to remember. in buying dividend shares is the return on the shares. Profitable returns greater than 4 over must be carefully tested; more than 10 people are firmly rooted in risk areas. Among other things, excessively profitable production may indicate that the payment is unstable or that investors are selling shares, reducing the value of their shares and, consequently, generating profits Will increase.

When it comes to finding the best dividend stocks, you’ll probably want to use an automated stock dividend screener as a tool to find good candidates to buy. Screening is a way to scan the stock market for stocks that meet your particular criteria. Profitable investments can be very profitable, and while there are many stock screening programs (some pay for you, some are free – I’ll list some free ones at the end of this article), it is important to understand the characteristics of good dividend stocks, so your screening tool can help you filter out unacceptable choices.

5 Ways To Find The Best & Highest Dividend Stocks In Pakistan

Profitable Stocks To find better profitable stocks, I would suggest focusing on the following features to help you find strong dividend stock candidates.

Dividend Yield

The dividend yield can be calculated primarily in one of two ways – either by using the trailing 12 months dividends or by using the expected dividends for the upcoming 12 months and then dividing that number by the current price of the stock. Ideally, you want to buy best-dividend stocks that have a yield that is higher than the overall market. Stock market yields as well as individual stocks yields will fluctuate over time, as stock prices move up and down, and the amount companies pay out in dividends changes, so it is good to check these factors right before you buy a stock, and not just rely on data you put together at some earlier point in time. At this time, I would suggest looking for stocks with dividend yields of at least 4% to 5%.

Profit

Also known as earnings, profit drives company growth, and more importantly for us, profit is what pays dividends in healthy stocks that pay dividends (some company’s pay for dividends by taking on more debt, and distributing that cash to share holders – see the next paragraph for more on debt). While there are many ways to measure profitability, one widely used indicator that can be found on most stock screens is return on equity (ROE). For ROE, the higher the better. The minimum ROE we want is in the 10% to 12% range. Another great indicator for profitability that is available on many stock screeners is earnings per share (EPS) – again, the higher the better for this indicator too.

Debt

Many of the best dividend stocks in Pakistan are from companies that are large, mature, and have accumulated long term debt during the process of growing into their current state. The problem with debt is that too much of it can represent a risk to future dividend payments if the company goes into a rough patch, and earnings drop to the point where they may need the money they normally pay out as dividends to service their debt payments. One easy way to measure debt is to look at the debt to equity ratio. For our purposes, we would like to see the company financed with more equity than debt, which means that our dividend stock screener would need to limit the debt to equity ratio to less than.5, and ideally, you should look for stocks with a ratio even lower than that.

Market Cap

Also known as the market capitalization of a company, is a good way to filter the size of the company you are looking for. Market cap is just the total number of shares outstanding, multiplied by the current price of the stock. Most analysts use this as the measure of a company’s size. For our dividend investing purposes, we want strong stable companies, and bigger companies are generally safer than smaller ones, so for market cap, select stocks that are at least in Billion.

Valuation

This is how much the market is paying for a company’s earnings stream. For this, we actually want a low valuation, because that usually means that a company’s stock price has been beaten down relative to it’s earnings. The price to earnings ratio (P/E) is a widely available indicator that can help you assess valuation on a free dividend stock screener.

List Of Best Dividend Stocks In Pakistan

I am maintaining here a list of high dividend yield paying stocks of all PSX sectors. The list is updated every month. Below are the highest dividend-paying stocks of PSX Pakistan

Best-Dividend Stocks List

Listed below are the Best-Dividend Stocks in each sector of the Pakistan Stock Exchange.

SYMBOL	NAME	PRICE	EPS ANNUAL	EPS LATEST	P/E	EXP P/E	DIVIDEND YIELD
AABS	AL- Abbas Sugar Mills Ltd.	181.33	64.05	17.29 3M	2.83	2.62	0.2344
AGTL	AL-Ghazi Tractors Ltd.	230	42.31	16.87 12M	5.44	13.63	0.1696
ALTN	Altern Energy Ltd.	26.45	2.63	2.68 6M	10.06	4.93	0.2325
ATIL	Atlas Insurance Ltd.	60	8.62	8.08 12M	6.96	7.43	0.1167
BWCL	Bestway Cement Ltd	88.99	16.93	0.71 6M	5.26	62.67	0.1236
DCR	Dolmen City Reit	11.38	3.09	1.81 6M	3.68	3.14	0.116
EFERT	Engro Fertilizers Ltd.	56.31	13.9	13.90 12M	4.05	4.05	0.2309
EFUG	EFU General Insurance Ltd.	83.88	13.04	13.04 12M	6.43	6.43	0.1192
EPQL	Engro Powergen Qadirpur Ltd.	18.5	10.51	10.51 12M	1.76	1.76	0.1622
FFC	Fauji Fertilizer Company Ltd.	89.41	13.62	13.62 12M	6.56	6.56	0.1208
FHAM	Frist Habib Modarba Ltd.	9	1.59	0.86 6M	5.66	5.23	0.1556
FPJM	First Punjab Modarba	1.95	0.85	0.05 6M	2.29	19.5	0.2564
FPRM	First Paramount Modaraba	5.5	0.88	0.20 6M	6.25	13.75	0.1818
GHGL	Ghani Glass Ltd.	32.94	5.8	1.64 6M	5.68	10.04	0.1366
GVGL	Ghani Value Glass Ltd.	33.91	9.35	3.23 6M	3.63	5.25	0.2064
HASCOL	Hascol Petroleum Ltd.	13.83	1.04	-13.89 9M	13.3	0	0.2531
INDU	Indus Motor Company Ltd.	836.5	174.49	29.32 6M	4.79	14.27	0.1375
KAPCO	Kot Addu Power Company Ltd.	16.81	14.9	13.32 6M	1.13	0.63	0.2677
KOHE	Kohinoor Energy Ltd.	25	4.31	3.03 6M	5.8	4.13	0.14
LOTCHEM	Lotte Chemical (Pak) Ltd.	9.23	2.93	3.66 12M	3.15	2.52	0.1625
MTL	Millat Tractors Ltd.	544	70.55	15.01 6M	7.71	18.12	0.1563
NCL	Nishat (Chunian) Ltd.	29.13	13.19	2.17 6M	2.21	6.71	0.1373
NCPL	Nishat Chunian Power Ltd.	10.66	9.3	5.71 6M	1.15	0.93	0.1876
OGDC	Oil & Gas Development Company Ltd.	91.81	27.53	12.37 6M	3.33	3.71	0.1198
OLPL	Orix Leasing (Pak) Ltd.	23.48	6.12	3.01 6M	3.84	3.9	0.1597
ORIXM	Orix Modaraba	16.39	2.78	1.33 6M	5.9	6.16	0.1525
ORM	Orient Rental Modaraba	7	1.37	0.27 6M	5.11	12.96	0.1429
PKGP	Pakgen Power Ltd.	12.05	3.99	5.66 9M	3.02	1.6	0.1245
POL	Pakistan Oilfields Ltd.	260.94	59.44	30.19 6M	4.39	4.32	0.1916
PTC	Pakistan Telecommunication Co. Ltd.	7.63	1.46	1.24 12M	5.23	6.15	0.1311
REWM	Reliance Weaving Mills Ltd.	28	16.32	6.70 6M	1.72	2.09	0.125
SCBPL	Standard Chartered Bank Pakistan Ltd.	20.01	4.14	4.14 12M	4.83	4.83	0.1499
SHDT	Shadab Textile Mills Ltd.	17.85	4.7	1.63 6M	3.8	5.48	0.2913
SHSML	Shahmurad Sugar Mills Ltd.	78.19	57.08	14.56 3M	1.37	1.34	0.2174
SINDM	Sindh Modaraba	7	1.8	1.30 6M	3.89	2.69	0.1929
SNGP	Sui Northern Gas Pipelines Ltd.	42.32	17.54	12.33 9M	2.41	2.57	0.1666
SPWL	Saif Power Ltd.	14.4	7.85	6.99 9M	1.83	1.55	0.2049
STJT	Shahtaj Textile Mills Ltd.	85.44	19.47	6.57 6M	4.39	6.5	0.117
TRPOL	Tristar Ployester Ltd.	5.15	1.73	0.23 6M	2.98	11.2	0.1942
WYETH	Wyeth Pakistan Ltd.	600	16.3	16.30 12M	36.81	36.81	0.1667

Final Words For Dividend Stocks

I hope you get information about the reliable Source of Passive Income with best-dividend stocks.

So now you’ve learned a little bit about dividend yield.

But, how exactly are those dividends paid to you?

Well, most companies distribute their dividends quarterly.

That money is usually deposited directly into your brokerage account, which you can then withdrawal as cash. Or, you have the option of having your dividends automatically buy more stock in that company, resulting in more dividends.

Buying more of the same stock with its dividend yield is called Dividend Reinvestment, and most brokerages offer this service for free.