Best diverdent stocks

Screening Filters

1. Market Capitalization ≥ $10 Billion (market_cap)

   • Purpose: Focus on larger, more established companies.
   • Rationale: Bigger firms tend to have more stable cash flows, more diversified businesses, and a longer track record of paying dividends. For “best dividend stocks,” investors usually prefer reliable, mature companies over small, higher‑risk names that might cut dividends in downturns.

2. Net Profit Margin ≥ 5% (net_margin)

   • Purpose: Ensure the company is consistently profitable with reasonable efficiency.
   • Rationale: A healthy net margin suggests the business can generate enough profit to both reinvest and pay dividends. Weak or volatile margins can lead to dividend cuts, which is not desirable when looking for strong dividend payers.

3. Dividend Yield (TTM) Between 3% and 8% (dividend_yield_ttm)

   • Purpose: Target an attractive, but not extreme, income level.
   • Rationale:
     • A yield below 3% may be too low for someone specifically seeking “best dividend” stocks.
     • A yield above 8% often signals elevated risk, potential financial stress, or an unsustainably high payout that might be cut.
       This range strikes a balance between solid income and avoiding “yield traps.”

4. Dividend Payout Ratio 30%–70% (dividend_payout_ratio)

   • Purpose: Screen for sustainable dividends.
   • Rationale:
     • Below 30%: The company may be under‑distributing and prioritizing reinvestment; it might be a good growth stock, but not necessarily a top income pick today.
     • Above 70%: The company is paying out most of its earnings as dividends, leaving little buffer for downturns or reinvestment. That can make the dividend vulnerable.
       The 30–70% band typically indicates a balance: meaningful income now with room to maintain or grow the dividend.

5. 5‑Year Dividend CAGR ≥ 3% (dividend_5yr_cagr)

   • Purpose: Require a history of consistent dividend growth.
   • Rationale: “Best” dividend stocks are often those that grow their payouts over time, protecting purchasing power against inflation. A 3%+ compound annual growth rate over 5 years suggests management is committed to steadily increasing shareholder income, not just maintaining a flat dividend.

Why Results Match “Best Dividend Stocks”

• The size and profitability filters (large market cap, net margin ≥ 5%) favor stable, financially solid companies that are better positioned to sustain dividends.
• The yield range (3–8%) directly targets meaningful income while avoiding extreme, risky yields.
• The payout ratio range ensures dividends are sustainable, reducing the risk of cuts.
• The 5‑year dividend growth requirement adds a quality and consistency dimension, focusing on companies that have a proven track record of increasing dividends over time.

Together, these filters aim to surface dividend stocks that are not just high‑yielding, but also sustainable, stable, and growing—characteristics typically associated with “best” dividend holdings for long‑term investors.