While I usually prefer to focus on dividend growth a lot more than current yield, for today's article I have decided to look at a few stocks that will reward their investors with dividend yields of over 4%. A high current yield will increase the amount of money I have available to reinvest. To minimize risk, I will be looking for companies that follow a simple set of rules:
Rule #1: Payout ratio must be under 100%, meaning earnings per share have to be higher than dividends.
Rule #2: A strong balance sheet: I'd like to see at least 4 quarters worth of dividend payments in cash, and a current ratio of more than 1.0.
Rule #3: No dividend cuts in recent history.
Rule #4: Current yield must be over 4%.
Source: Seeking Alpha
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I like this method. Very easy to research and to understand.