What’s stocks have the best dividends

Screening Filters

1. Market Cap > $2B

• Purpose: Focus on larger, more established companies.
• Rationale: Companies with a higher market cap are generally more stable and less likely to have fragile dividend policies. This helps narrow the screen to stocks that are more likely to sustain dividends over time.

2. Free Cash Flow TTM > 0

• Purpose: Ensure the company is generating enough cash to support dividend payments.
• Rationale: Dividends are paid from cash, not just accounting earnings. Positive free cash flow is a key sign that a company can fund dividends without relying heavily on debt or unsustainable financing.

3. Net Margin > 0

• Purpose: Filter for profitable businesses.
• Rationale: A company that is consistently profitable is more likely to maintain and grow dividends. Positive net margin indicates the business is not operating at a loss, which supports dividend reliability.

4. Dividend Yield TTM > 4%

• Purpose: Target stocks offering relatively high current income.
• Rationale: Since the user asked for “the best dividends,” a yield threshold helps identify stocks that pay meaningfully above-average dividends. A 4%+ yield is typically considered attractive for income-focused investors.

5. Dividend Payout Ratio Between 20% and 80%

• Purpose: Find dividends that are both meaningful and sustainable.
• Rationale:
  • A payout ratio below 20% may indicate the dividend is too small to be especially attractive.
  • A payout ratio above 80% can signal that the dividend may be stretched or at risk.
  • The 20%–80% range balances income with sustainability, helping avoid overly aggressive payouts.

Why Results Match:

• Together, these filters aim to find stocks that are large, profitable, cash-generative, and already paying a strong dividend.
• The screen does not just look for the highest yield; it also tries to avoid companies whose dividends may be unsafe or poorly supported.
• This makes the results more relevant to a query about the “best dividends,” because it prioritizes both income level and dividend quality/stability.