Screening for Dividend Stocks and ETFs

Introduction

Dividend investing involves investing in companies that pay regular dividends to their shareholders. This strategy can be attractive for investors who are looking for a steady source of income from their investments.

This is the first of a three-part series that focuses on the Stock Rover features that help you quickly identify, research and track dividend investment candidates. The three-part series is structured as follows:

• Part 1 – Screening for Dividend Stocks and ETFs
• Part 2 ^[42] – Researching the Results of a Dividend Screener
• Part 3 ^[43] – Tracking Dividend Income

Dividend Screeners

Whether we are interested in looking for companies that have a history of paying regular uninterrupted dividends, are growing their dividends, are providing a desired dividend yield, are ensuring that companies are earning enough to meet their dividend obligations or something even more exotic, there is likely a dividend screener to suit our needs.

Below we searched in the Stock Rover Investor’s Library ^[44] for Screeners with the word “Dividend” in the name or description. We can use the resulting list as a good starting point to help us find good dividend candidates, as it shows what is available out of the box in Stock Rover.

Any of the Screeners listed below can easily be imported ^[47] into your Stock Rover account from the Library.

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Stock Rover’s Investor Library features over two dozen out-of-the-box dividend screeners.

The following sections will provide a brief description of each of the 27 “out of the box” dividend focused screeners available in Stock Rover.

Note: While the screening facility is available to all paid users, some of the pre-built screeners listed below may require a specific subscription tier depending on the metrics and advanced screening capabilities they utilize. When browsing the Investor Library, each screener clearly indicates its required plan.

Blue Chip Finder

The Blue Chip Finder finds very large companies with average or below average beta and modest dividend growth. Criteria include NASDAQ and NYSE companies over $50 billion in market cap, with a beta less than 1, a minimum dividend yield of 1%, and an average compound annual growth in dividends of 2% over the 1-year, 3-year, and 5-year time periods. Also a minimum average compound annual growth in earnings per share of 2% over the last 5 years is required to pass the screener.

Dividend Aristocrats Plus

Dividend Aristocrats Plus finds long-track-record dividend growers with strong safety profiles. Requires consistent positive dividend growth over 5-year and 3-year periods, combined with a Dividend Safety Score above 60, free cash flow payout ratio under 80%, conservative leverage, and minimum $2B market cap. Identifies proven compounders that have maintained and raised dividends across market cycles.

Dividend Consistency

Dividend Consistency finds companies who have consistently maintained or increased their dividend. Criteria include companies who have consistently maintained or increased their dividends every year for a 5-year period. A current payout ratio less than or equal to 60% is also required to pass the screener.

Dividend Growth

Dividend Growth finds companies that show dividend growth. Criteria include companies with a dividend yield between 1.5% and 3.75%, a minimum average compound annual growth in dividends of 8% over the 1-year, 3-year, and 5-year time periods, and a minimum average compound annual growth in earnings per share of 8% over the last 5 years. A payout ratio between 10% and 40% and a minimum average compound annual growth in sales of 4% over the last 5 years are also required to pass the screener.

Dividend Growth and Consistency

Dividend Growth and Consistency finds companies who have consistently increased their dividends every year for an 8 year period, with a current payout ratio less than 50%, a yield greater than 2.4% and forward dividend growth of at least 2%. Stocks are from major US listings.

Dividend Income Machine

Dividend Income Machine finds ETFs with high forward dividend yield backed by quality underlying holdings. Forward yield above 2.5%, weighted-average ROE of holdings above 12% (quality gate that filters yield traps), expense ratio below 0.40%, AUM above $300M, and annualized 5-year total return above 4%.

Dividend Safety Leaders

Dividend Safety Leaders finds dividend stocks with strong safety profiles backed by consistent free cash flow and conservative leverage. The Dividend Safety Score combines six quality inputs into a single 0-100 rating. Adding payout ratio and FCF consistency filters ensures the dividend is well-covered by actual cash generation, not just reported earnings.

Dividend Yield

Dividend Yield finds companies with good dividends where the dividends are increasing over time. Criteria include companies over $1 billion in market cap, with a dividend yield between 3% and 10%, and a minimum average compound annual growth in dividends of 2% over the 1-year, 3-year, and 5-year time periods. A payout ratio between 30% and 60% is also required to pass the screener.

Dividends + Great Free Cash Flow

Dividends + Great Free Cash Flow finds companies that are inexpensive as valued by free cash flow. Criteria include a minimum dividend yield of 1%, a minimum average compound annual growth in earnings per share of 5% over the last 5 years, a price to cash flow less than 8%, and a price to earnings less than 12%. A price to free cash flow less than 8%, and a minimum average compound annual growth in sales of 5% over the last 5 years are also required to pass the screener.

Dividends Likely To Be Cut

Dividends Likely to be Cut looks for stocks whose earnings and cash flow have decreased, but whose (already high) payout ratio has increased. Criteria include net income and free cash flow both decreasing from 1 year ago. In addition, a payout ratio greater than 60% which has also increased consecutively over the last 2 years is required to pass the screener.

Dividends Not Cut for 10 Years

Dividends Not Cut for 10 Years finds companies that have not cut dividends for the past ten years. The dividend per share must be greater than or equal to the value from the previous year for the last 10 years to pass the screener.

Dogs – Dividend Growth

Dogs – Dividend Growth finds highest dividend yielders in the DJIA and incorporates dividend growth and safety. Criteria include a high-ranking dividend yield and a high-ranking average compound annual growth in dividends over the 1-year, 3-year, and 5-year time periods. A low-ranking free cash flow payout ratio is also required to pass the screener.

Dogs – S&P 100 Out of Favor

Dogs – S&P 100 Out of Favor looks for 10 dividend-paying stocks that are the most out of favor on the S&P 100. A dividend yield above 2.7% and low rankings for the money flow index and 1-month returns are required to pass the screener.

Dogs – Value

Dogs – Value finds highest dividend yielders in the DJIA focusing on inexpensive valuation. A dividend yield above 2.8% and low rankings for forward P/E and 5-year P/E range are required to pass the screener.

Dogs of the Dow

Dogs of the Dow finds the 10 highest dividend yielders in the DJIA.

ETF Dividend Growth

ETF Dividend Growth finds ETFs with good dividends yields and where dividends are increasing over time. Criteria include a minimum market cap of $1 billion and a dividend yield between 2.5% and 10%. A minimum average compound annual growth in dividends of 1% over the 1-year, 3-year, and 5-year time periods are also required to pass the screener.

ETF Dividend Yield

ETF Dividend Yield finds ETFs with good dividends yield and that have a Morningstar rating of 3 or above. A minimum market cap of $1 billion, a dividend yield above 3.5%, and a Morningstar rating of 3 or above are required to pass the screener.

High Shareholder Yield

High Shareholder Yield finds mid cap & larger companies with the highest shareholder yield. A market cap above $2 billion, a shareholder yield above 7%, and a payout ratio of less than 60% are required to pass the screener.

Large/Mid Cap Dividend Growers

Large/Mid Cap Dividend Growers finds large dividend-paying companies where the dividends increase over time. Criteria include a minimum market cap of $7 billion, a dividend yield between 1.5% and 5%, a minimum average compound annual growth in dividends of 1% over the 1-year, 3-year, and 5-year time periods, a minimum average compound annual growth in earnings per share of 10% over the last 5 years, and a minimum average compound annual growth in operating income of 5% over the last 5 years. A payout ratio between 10% and 50% and a minimum average compound annual growth in sales of 5% over the last 5 years are also required to pass the screener.

Low Volatility Dividend

Low Volatility Dividend finds stocks with above-average dividend yields that exhibit lower price volatility than the broad market. Combines low beta, low annualized volatility, and strong Sharpe ratios with dividend safety to identify income stocks that let you sleep at night. Ideal for retirees and conservative portfolios seeking income without excessive drawdown risk.

S&P 500 Best Dividend Growers

S&P 500 Best Dividend Growers finds the best S&P 500 stocks for dividend growth over a 5-year period. Criteria include a dividend yield above 2.5% and a minimum average compound annual growth in dividends of 5% over the last 5 years. A minimum average compound annual growth in earnings per share of 5% over the last 5 years is also required to pass the screener.

Safe Dividend Growth

Safe Dividend Growth finds modest dividend-growing stocks that have outperformed their sector and industry in the last year. Criteria include tickers on the NYSE and Nasdaq that have a positive 1-year return of a stock versus its industry, a positive 1-year return of a stock versus its sector, a dividend yield above 1.4%, and that show dividend growth over the 1-year, 3-year, and 5-year time periods. A low-ranking dividend yield sector decile and a low-ranking financial safety sector decile are also required to pass the screener.

Stock Rover Dividend Ratings

Stock Rover Dividend Ratings finds large cap stocks on the NYSE or Nasdaq that are in the top dividend growth and safety decile of Stock Rover ratings, that are also in the top two deciles for price momentum. A market cap above $10 billion, a dividends rating vs. peers above 90, and a momentum rating vs. peers above 80 are required to pass the screener.

Top 25 S&P 500 Dividend Growers

The 25 Fastest Dividend Growers in the S&P 500 looks at a weighted average of the dividend growth rates for the 1-year period through the 10-year period, as well as expected future dividend growth rates. A minimum dividend yield of 1.5% and a payout ratio of less than 75% is required to pass the screener.

Top 50 Dividend Growers

The 50 Fastest Dividend Growers across all North American exchanges looks at a weighted average of the dividend growth rates for the 1-year period through the 10-year period, as well as expected future dividend growth rates. A minimum dividend yield of 1.5% and a payout ratio of less than 50% is required to pass the screener. Additionally, the company must have a market cap of at least 5 billion dollars.

Value with Dividends

Value with Dividends finds dividend-paying companies that are inexpensive by traditional measures such as low price to earnings, price to sales, and price to book. Criteria include a dividend yield greater than 2%, a minimum average compound annual growth in dividends of 1% over the last 5 years, a minimum average compound annual growth in earnings per share of 8% over the last 5 years, a payout ratio less than 60%, a price to book less than 1.2, and low-ranking price earnings. A price to sales less than 2 and a minimum average compound annual growth in sales of 3% over the last 5 years are also required to pass the screener.

Yield Screener

The Yield Screener finds stocks based on dividend yield metrics. A dividend yield above 3.75%, a minimum average compound annual growth in dividends of 3% over the last 5 years, and a payout ratio below 50% are required to pass the screener.

Dividend Screener Examples

Using three of the screeners as examples, let’s take a look at the results that you can expect to see from Stock Rover screeners. We’ll focus on examples that incorporate dividend growth and dividend yield in the screening criteria.

We’ll be loading our screener results into the Table ^[76]. The Table provides a flexible spreadsheet-like paradigm for viewing tickers and their data. In our examples, each row in the Table will correspond to a ticker that passed the screener, and each column will correspond to a metric that was evaluated as part of the screening criteria. So we’ll see what tickers passed the screener and why.

Later in this series, we’ll show how we can also use the Table ^[76], Chart ^[77], and Insight Panel ^[78] to perform a deep dive into our screener results.

Top 50 Dividend Growers

Screener Criteria

This is a ranked screener ^[79] that is evaluating dividend-paying stocks trading in the NYSE, Nasdaq, TSX Venture, and Toronto exchanges. It will return the top 50 stocks, looking at a weighted average of the dividend growth rates as well as expected future dividend growth rates.

The full screening criteria is shown below:

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Screener Results

We’ll load the Table with the 50 tickers that passed our screener’s filtering criteria:

1. Start Menu – We’ll select Screeners
2. Start Menu – We’ll launch the Table
3. Navigation – Let’s select the Top 50 Dividend Growers screener.
4. Views – Select Screener Filters which we have configured ^[81] to show our screener results.

   Each metric column in our Screener Filters view represents a metric that was evaluated by the screener, the row values represent the passing results for each ticker.

5. We’ll click on the Rank column heading to sort on highest Rank.
6. Lastly, we’ll mouse over 1 in the Rank column to show the tooltip for the #1 ticker – Pinnacle Finl Partners (PNPF)

Of the 50 tickers that passed our screener, Pinnacle Finl Partners (PNPF) is our top-ranked dividend grower stock.

The tooltip is showing us that Pinnacle Finl Partners (PNPF) scored 93.2 out of 100 based on the weighted average of its dividend growth rates for the 1-year period through the 10-year period, as well as its expected future dividend growth.

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Table results displaying the top 50 dividend-growing stocks based on weighted historical and expected growth rates.

High Shareholder Yield

Screener Criteria

This ranked screener is evaluating stocks across all North American exchanges, looking for mid cap & large companies with the highest shareholder yield and a payout ratio below 60. It will return the top 100 stocks.

The full screening criteria are shown below:

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Screener Results

We’ll load the Table with the tickers that passed our screener’s filtering criteria:

1. Start Menu – We’ll select Screeners
2. Start Menu – We’ll launch the Table
3. Navigation – Let’s select the High Shareholder Yield screener.
4. Views – Select Screener Filters which we have configured ^[81] to show our screener results.
5. We’ll scroll through the top 100 tickers that passed the screener until we reach the row for First Citizens BancShares (FCNCB), then right-click on the row and select Historical Data.

   The resulting popup is showing us the 20-year values for the metrics we just screened on: Market Cap, Payout Ratio, and Shareholder Yield.

   We can see the current passing values for First Citizens BancShares (FCNCB), as well as how those metrics fared in the past.

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Table results highlighting mid and large cap companies with the highest shareholder yield.

ETF Dividend Yield

Screener Criteria

The screener is filtering for dividend-paying ETFs with good dividends yields and that have a Morningstar Rating of 3 or above.

The full screening criteria are shown below:

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Screener Results

We’ll load the Table with the tickers that passed our screener’s filtering criteria:

1. Start Menu – We’ll select Screeners
2. Start Menu – We’ll launch the Table
3. Navigation – Let’s select the ETF Dividend Yield screener.
4. Views – Select Screener Filters which we have configured ^[81] to show our screener results.
5. We’ll sort the passing ETFs using Morningstar Rating by clicking on the Morningstar Rating column heading.

   After sorting on our Morningstar Rating column, we see that there are quite a few ETFs with a 5-star rating that passed the screener.

   Note we could have also chosen to filter ^[86] by the Morningstar Rating column and return only ETFs with specific ratings.

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Table results showing passing dividend-paying ETFs sorted by Morningstar Rating.

Summary

We’ve shown that Stock Rover comes with an extensive library of out-of-the-box stock and ETF Dividend Screeners. We can screen for dividend growth, dividend yield, dividend safety, and much more. We also demonstrated how we can display our screener results in the Table.

In the next segment of this series, we will take a closer look at how to perform research on the results of a Dividend Screener.

Frequently Asked Questions