The dividend payout ratio should be less than 100%, and the company shouldn’t rely on its bank balance or loans to pay dividends.
What’s the Debt Servicing Ratio? It’s calculated by dividing the net interest expense by the net operating cash flow, ideally less than 30% for dividend-paying companies.
Do US Companies Offer Competitive Dividend Yields?
US companies often have a 30% tax on dividends and may offer lower yields than companies in other regions.
How Can One Identify High Dividend Stocks? Tools like Finviz and investing.com can help filter companies based on dividend yield and other essential metrics. Always verify the sustainability of dividends using platforms like MorningStar.