Log into your Charles Schwab account.
How to find good dividend stocks to invest in?
Click on Research and click on US Markets.
Depending on your account you might have to click on Classic View if you are given the choice.
Click on Industries.
You will have the sectors and industries list open.
Scroll down to see the list.
You will see the list of sectors.
Have investment spreadsheet and record the list of the different sectors.
Click on the 1st sector.
Record the industries in that sector in your stock worksheet.
Click on the 1st industry.
Record sub industries in your workbook.
Click on one sub industry.
You will have a list of stocks.
Filter One: Dividends
Sort the stock by dividends.
Our goal is to filter to stocks that offer dividends.
Click on valuation on top.
The new filters will include Dividends.
Click on Dividends.
That will filter the stocks from high dividends to low dividends.
Look at the stock name of the dividends you judge high enough for you.
Filter 2: Eliminate LLC and partnership companies.
LLC and partnership companies pay high dividends but sent out Schedule K-1 to investors in spring that you will use to file your 1040 if you invest in an LLC stock in your brokerage account.
If you invest in an LLC stock in your Roth IRA, the brokerage firm will file a form 990-T on your behalf in spring. You will receive the Schedule K-1 from the company and send it to your brokerage firm for them to file a tax return on your behalf related to that Schedule K-1.
I would not advise you invest in partnership nor LLC stocks. They are a hassle.
If the company’s name of a high dividend stock ends with partnership, LP, Ltd, Limited, or LLC, discard it.
If a company ends with Inc., Corp, Corporation, or Co., it is a corporation. Look at the dividend to see it is high and met your dividend rate standard you set.
If yes, record that company’s name, its symbol, its price, as well as its annual dividend rate in your investment workbook.
Continue to the next company.
Filter 3: Avoid most international companies.
You may not know if they are limited companies or corporations. Therefore, you can avoid most of them unless you like them unless it is a corporation. Most of them will have SA at the end of the company’s name. SA is not an US entity classification. Therefore, I am not sure if both a limited company and a corporation could use that same entity title.
Batch Research Dividend Stocks
When you are done with scrutinizing companies in a sub industry, go on top of the page and click on the name of the industry you are in. You will go back to the list of sub industries inside that industry. You can click on the next sub industry and analyze its companies.
Once you see the list of companies in that sub industry, click on valuation to filter with dividends.
Repeat the process on top to locate high dividends stocks that are not partnership companies or SA international companies.
You can continue the process and record all the high dividend stocks in all sub industries in all industries and sectors in the stock market for your own stock investment spreadsheet.
After you have your list of some stocks you can proceed to filter them down again.
Filter 4: Remove OCT market stocks.
Once you have some list of companies that made to your stock investment spreadsheet, you can analyze them further to mark the good ones.
If you use Charles Schwab, login in your Charles Schwab account.
Click on Research in the top bar.
Click on Stocks in the drop-down window.
Type a company symbol from your workbook in the search box.
Click research or click on the name of the company associated with the symbol in the suggested window.
You will access the stock summary page where you can retrieve few financial data.
Record the market the company stock is sold on.
Discard OTC over the counter market stocks.
Penny stocks are sold on OTC market.
Some international companies’ stocks are sold on OTC.
Penny stocks can fluctuate a lot. They might be good to speculate on but risky to invest in long term. Therefore, you might leave them alone.
You don’t need to remove them off your list.
If the market the stock is sold on is OTC, you can just stop there for that stock. It didn’t pass your requirement.
Just move to the next company.
Type another symbol in the symbol search bar right above the company name of the stock you just searched.
Look for stock market like NYSE and NADSAQ.
When the company stock is sold on NYSE or NASDAQ, record the 52 weeks low and high. That is the lowest price and the highest price the stock sold during the past 52 weeks.
Filter 5: Avoid new companies.
Scroll down to the chart.
Click on more details on top of the chart at the right.
Make sure it is “Max” chart. Otherwise, click on the period to choose “Max” in the drop-down menu.
You will see the chart far back to when the company went public.
Record the oldest year on the chart in your workbook.
Avoid new companies.
Filter 5: Chart Analysis
Look at the chart and record the trend.
Is the trend upward? Is the chart reflets growth and dip? Is the chart level through the years? Is the chart downward when you see the start of the chart and its end?
Note your chart remark in your workbook.
If the chart is upward, and the company went public decades ago, highlight the row for that company and make a note next to it that you could buy it if you like the annual dividend rate it pays.
That is a company you could invest in with the assumption that while you have that stock in your portfolio it will continue to generate dividends for you and continue to appreciate in value year after year.
Investing in dividends stock is to generate streams of income through stock investment without selling the stocks.
You don’t need to wait for the stocks to appreciate overtime for you to sell to realize gain. You want to generate a stream of income overtime from your dividends to replace your income from your jobs without the need of selling your stocks. In case of economic crisis, you will not worry about selling your stocks at a loss to access your funds. They will continue to generate a stream of income through dividends.
You can continue this stock evaluation process to bulk evaluate few on your list and highlight the ones that are good for you to invest in.
When can you buy a stock?
Login into your Charles Schwab account.
Click on Search in the top bar.
Click on Stocks in the sub menus.
Search one of the stocks you highlighted in your list.
Type the stock symbol in the symbol search box.
That stock summary page will open.
Look at the current price and compare it to the 52 weeks low and high.
If the current price is close to its 52 weeks low, place the order and set a little lower price you want to buy it at. It the stock price goes that low, the brokerage firm will buy it for you.
Make note in your investment worksheet for stocks you purchased and stocks you placed an order for. That way you make sure you have enough cash in the account for the purchase orders to go through when the stocks go low and reach your limit price.
Your investment account will show the cash you have available but will not take into consideration stocks you placed order for. Therefore, maintaining an investment spreadsheet to track amount your deposited in your investment account, the amount you spent in stocks, and the amount committed to stock purchase will allow you to estimate the amount you have remaining to invest without over committing or overspending when all your purchase orders go through.
Conclusion: 1-How do I find stocks that pay dividends
The video explains how to find dividends stocks and analyze them to find the ones that met our investment requirements.
In this video, we searched companies in the Communication Services sector.
The Communication Services sector includes the following industries:
Diversified Telecommunication Services
Entertainment
Interactive Media & Services
Media
Wireless Telecommunication Services
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