How to Find the Best Dividend Stocks

How to Find the Best Dividend Stocks
Lawrence Rothman, CFA, The Motley Fool
·3 min read

Ideally, a company has sufficient earnings to reinvest in the business and reward shareholders by returning a portion as dividend payments. One way to see how a company is balancing earnings and reinvestment is by looking at its payout ratio. There's no specific percentage to watch to determine if a payout ratio is too high.