Dividend stocks are a favorite among long-term investors because they pay cash dividends to investors just for holding the stock.
Whether you are building a portfolio for retirement or looking for stocks with consistent income, dividend-paying stocks can offer both steady portfolio income and returns.
In this article, we’ll walk through three of the best stock screeners that dividend investors can use on TIKR. Each screener is tailored to a specific dividend investing strategy to help you find the best stocks for your investing style.
Let’s dive in!
What are Dividend Stock Screeners?
A well-built dividend stock screener can help you filter the market to find the dividend stocks that are best for you. Screeners allow you to filter the whole market based on key metrics like dividend yield, payout ratio, dividend growth forecast, and more.
Generally, a good dividend stock offers more than just a high dividend yield. You also want to look for stocks with a sustainable payout ratio, consistent cash flow, and ideally, some level of dividend growth. That is why it is important to combine multiple filters when using a stock screener.
Start by identifying your primary goal. If you want immediate dividend income, focus on a high dividend yield with payout safety. If you want long-term compounding, prioritize earnings and dividend growth as well as return on invested capital. Some investors prefer a blend of both, with companies that return cash through dividends and buybacks while also growing earnings.
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Screener 1: High-Yield Dividend Stocks
This screener targets companies that offer strong dividend income without excessive risk. Many high-yield stocks can look attractive on the surface but may be overextended or financially weak.
This screen focuses on companies that offer a balance of a strong dividend yield as well as financial stability, making them better suited for long-term income investors.
We filter for stocks with a dividend yield over 5%, a manageable payout ratio under 70%, strong return on equity, and a market cap above $2 billion to avoid any thinly traded small-cap companies.
Why This Strategy Works
- Consistent income: High dividend yields provide dependable cash flow, even in flat markets.
- Payout discipline: Screening for lower payout ratios helps avoid companies that are stretching to maintain their dividend.
- Financial health: Strong ROE and larger market caps point to stable, mature businesses with consistent earnings.
- Risk reduction: Avoids chasing risky ultra-high-yield stocks that often lead to dividend cuts.
- Income foundation: Ideal for anchoring a dividend portfolio with safer, high-income names.
Example Stocks: Verizon (VZ), T. Rowe Price Group (TROW), OneMain Holdings (OMF)
Key Filters:
- Dividend payout ratio under 75% (but greater than 0%)
- Dividend yield greater than 5%
- ROE over 12%
- Market cap over $2 billion
- US companies only
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Screener 2: Dividend Growth Champions
This screener is built for long-term investors who want to see their dividend income grow over time. Rather than focusing on stocks with high dividend yields today, this strategy targets companies with a proven track record of increasing their dividends yearly while maintaining healthy financials and reinvesting in their business.
This screen helps to find dividend growth stocks with strong returns on invested capital, expected to grow earnings and dividends by over 5% annually over the next 3 years.
Why This Strategy Works
- Income growth: Companies that grow dividends help investors keep up with inflation and increase passive income year after year.
- Business quality: Long dividend growth streaks signal disciplined capital allocation and resilient earnings.
- Reinvestment opportunity: High ROIC indicates management is investing in opportunities that generate strong returns.
- Financial strength: A low payout ratio allows room to grow the dividend and absorb temporary downturns.
- Compounding effect: Dividend growth can significantly increase long-term total returns.
Example Stocks: Dell Technologies (DELL), MSCI (MSCI), Yum! Brands (YUM), Otis Worldwide (OTIS)
Key Filters:
- EPS expected to grow over 5% annually over the next 3 years
- Dividends expected to grow over 5% annually over the next 3 years
- Dividend payout ratio under 60 percent
- Dividend yield of over 1%
- Debt/Equity of less than 3x
- US companies only
- Return on capital of over 10% in the last 12 months
Find dividend growth stocks with TIKR’s global stock screener (It’s free) >>>
Screener 3: Undervalued Dividend Stocks with Buybacks
This screener is built for value-oriented investors who want shareholder-friendly companies. The screen targets companies trading at attractive valuations while returning capital to shareholders through dividends and share buybacks. This combination of income and value can offer stronger total returns over time.
This screen finds companies with dividend yields above 2%, over $250 million in share repurchases last year, a forward P/E below 15, and low debt levels. These filters highlight stocks with strong shareholder returns and solid financial fundamentals.
Why This Strategy Works
- Total shareholder yield: Combines dividends and buybacks to give a fuller picture of capital returned to investors.
- Valuation support: A lower P/E ratio can reduce downside risk and increase potential upside as the market re-rates the stock.
- Strong balance sheets: Low debt helps ensure dividends and buybacks are sustainable over time.
- Quiet compounders: Companies that consistently reduce their share count often grow earnings per share faster than expected.
- Underrated value: These stocks are often overlooked, offering upside without relying on market momentum.
Example Stocks: British American Tobacco (BATS), Kroger (KR), Tesco (TSCO), Stellantis (STLAM)
Key Filters:
- Dividend yield greater than 2%
- Spent over $250 million on share repurchases last year
- Forward P/E under 15x
- Forward Net Debt/EBITDA under 3x
- Market cap over $1 billion
Find undervalued stocks quicker with TIKR’s stock screener (It’s free!) >>>
Additional Screener Filters:
To refine the results you get from any of these stock screeners even further, you can try adding these kinds of filters:
- Exclude specific industries (Ex: energy, mining, financials, biotech)
- Filter by region (Ex: US-only or international stocks)
- Set a market cap range (Ex: <$2 billion for small-caps, <$250 million for micro-caps)
- Limit to profitable companies (Ex: net margin greater than 0%)
It’s generally best to aim for a sweet spot of getting 10-50 results with each stock screen that you run.
If you’re getting less than 10 stock ideas per screen, you might not find enough stocks that you like for further research, while if you get over 50 ideas, you might not have time to sift through all of them.
TIKR Takeaway
The dividend screeners shared in this article are meant to help you filter out the noise so that you can find high-quality dividend stocks for further research.
The TIKR Terminal offers industry-leading financial data on over 100,000 stocks, so if you’re looking to find the best stocks to buy for your portfolio, you’ll want to use TIKR!
TIKR offers institutional-quality research for investors who think of buying stocks as buying a piece of a business.
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FAQ Section:
1. What is the best stock screener for dividend investors?
The best stock screener for dividend investors allows investors to add customizable filters to screen for dividend yield, payout ratio, dividend growth, and valuation. Platforms like TIKR offer these filters for free and are highly rated among long-term investors.
2. How do I screen for safe dividend stocks?
To screen for safe dividend stocks, focus on companies with low payout ratios (under 70%), consistent free cash flow, and strong return on equity. Avoid high-yield stocks with volatile earnings or excessive debt.
3. How do I find undervalued dividend stocks?
Use valuation filters like Forward P/E under 15, high dividend yield, and analysts’ price target to identify undervalued dividend stocks. These metrics help pinpoint stocks returning capital to shareholders at reasonable prices.
4. What is a good dividend payout ratio to look for?
A good dividend payout ratio is typically under 70%. This ensures the company has room to maintain or grow dividends even during down cycles.
5. Can I build a dividend portfolio using free stock screeners?
Yes, you can build a dividend portfolio using free screeners like TIKR, which offer detailed financial data and filtering tools for dividend yield, growth, payout ratios, and valuation metrics.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. We aim to provide informative and engaging analysis to help empower individuals to make their own investment decisions. Neither TIKR nor our authors hold any positions in the stocks mentioned in this article. Thank you for reading, and happy investing!
