How To Find High-Dividend Stocks With Finviz

Finding solid high-dividend stocks can be a cornerstone of a successful income-generating investment strategy. But sifting through thousands of publicly traded companies can feel overwhelming. That's where Finviz comes in. This powerful, free (with a paid upgrade option) stock screener allows you to filter stocks based on a multitude of factors, including dividend yield. This guide will walk you through using Finviz to pinpoint high-dividend stocks that align with your investment goals.

Think of Finviz as your digital research assistant. It can quickly narrow down the vast universe of stocks to a manageable subset based on criteria you define. While Finviz is a fantastic tool, remember that it's just a starting point. Thorough due diligence is still crucial before investing in any stock.

Let's dive into the steps to uncover those high-dividend gems!

1. Accessing the Finviz Stock Screener

First, head over to the Finviz website: https://finviz.com/. On the homepage, you'll see a menu at the top. Click on the "Screener" option. This will take you to the stock screener interface, where the real magic happens.

2. Understanding the Finviz Screener Interface

The screener interface is divided into three main tabs:

  • Descriptive: This tab lets you filter stocks based on basic information like market capitalization, industry, and country.
  • Fundamental: This is where you'll find the financial ratios and metrics, including dividend yield, payout ratio, and earnings per share.
  • Technical: This tab focuses on technical analysis indicators like moving averages, relative strength index (RSI), and volume.

For finding high-dividend stocks, we'll primarily focus on the "Descriptive" and "Fundamental" tabs.

3. Setting Your Initial Filters: Descriptive Tab

Before diving into dividend specifics, it's helpful to narrow down the universe of stocks based on some basic criteria. This prevents you from sifting through companies that are clearly not suitable for your portfolio. Here are a few suggestions:

  • Market Cap: Decide what size companies you're interested in. Larger companies (Large Cap, Mid Cap) tend to be more stable, while smaller companies (Small Cap, Micro Cap) may offer higher growth potential but also carry more risk. Select the market capitalization range that aligns with your risk tolerance.
  • Country: If you're only interested in US-based stocks, select "USA." Finviz also allows you to screen for stocks in other countries.
  • Industry: You might have preferences for certain industries. For example, you might prefer utilities or real estate investment trusts (REITs), which are often known for their dividend payouts.

4. Focusing on Dividends: Fundamental Tab

Now, let's get to the core of our search: dividends. Click on the "Fundamental" tab. Here's where you'll set the filters to identify high-dividend stocks:

  • Dividend Yield: This is the most important filter. Set the "Dividend Yield" to "Over" a certain percentage. What constitutes "high" is subjective and depends on current market conditions and your investment goals. As a starting point, you might consider setting it to "Over 3%" or "Over 4%." Be aware that extremely high dividend yields (above 8-10%) can sometimes be a red flag, indicating potential financial distress or unsustainable payouts.
  • Payout Ratio: The payout ratio indicates the percentage of a company's earnings that it pays out as dividends. A high payout ratio (over 80%) might suggest that the company has limited room to increase its dividend or that the dividend is unsustainable if earnings decline. Conversely, a very low payout ratio (below 30%) might indicate that the company is not fully utilizing its earnings to reward shareholders. Aim for a payout ratio between 30% and 70% for a good balance.
  • Dividend Per Share: This shows the actual amount of dividend paid per share.
  • EPS (Earnings Per Share): Ensure the company is profitable. A positive EPS is generally a good sign.
  • Debt/Equity: A lower Debt/Equity ratio is generally preferred, as it indicates that the company is less reliant on debt financing.

5. Analyzing the Results

After setting your filters, Finviz will display a list of stocks that meet your criteria. Take the time to analyze the results carefully. Don't just blindly invest in the stock with the highest dividend yield.

Here are some things to consider:

  • Company Fundamentals: Review the company's financial statements (balance sheet, income statement, cash flow statement) to assess its overall financial health. Look for consistent revenue growth, profitability, and a strong balance sheet.
  • Industry Outlook: Understand the industry the company operates in and its competitive position. Is the industry growing or declining? Does the company have a competitive advantage?
  • Dividend History: Check the company's dividend history. Has it consistently paid dividends over time? Has it increased its dividend payments? A long track record of consistent dividend payments is a positive sign.
  • News and Analysis: Read news articles and analyst reports to get a better understanding of the company's prospects and potential risks.

6. Example Scenario

Let's say you're looking for US-based, mid-cap stocks with a dividend yield over 4% and a payout ratio between 30% and 70%. Here's how you would set up your Finviz screener:

  • Descriptive Tab:
    • Market Cap: Mid Cap
    • Country: USA
  • Fundamental Tab:
    • Dividend Yield: Over 4%
    • Payout Ratio: Between 30% and 70%

Finviz will then display a list of stocks that meet these criteria. You can then analyze these stocks further using the steps outlined above.

7. Beyond the Basics: Advanced Filtering

Finviz offers even more advanced filtering options. For example, you can filter stocks based on:

  • Price/Earnings (P/E) Ratio: This ratio compares a company's stock price to its earnings per share. A lower P/E ratio might indicate that the stock is undervalued.
  • Price/Book (P/B) Ratio: This ratio compares a company's stock price to its book value per share. A lower P/B ratio might also indicate that the stock is undervalued.
  • Analyst Recommendations: You can filter stocks based on analyst ratings (e.g., Buy, Hold, Sell).

Experiment with these advanced filters to refine your search and find stocks that meet your specific investment criteria.

8. Important Considerations and Caveats

  • Dividend Cuts: Remember that companies can cut or suspend their dividend payments at any time, especially during economic downturns.
  • Tax Implications: Dividends are typically taxed as ordinary income or at a qualified dividend rate, depending on your tax bracket and the type of dividend.
  • Diversification: Don't put all your eggs in one basket. Diversify your portfolio across different sectors and asset classes to reduce risk.
  • Due Diligence is Key: Finviz is a powerful screening tool, but it's not a substitute for thorough research and due diligence. Always do your homework before investing in any stock.
  • Finviz Elite (Paid Version): The paid version of Finviz offers real-time data, advanced charting features, and the ability to export data to Excel. While the free version is sufficient for basic screening, the paid version can be a valuable tool for serious investors.

Conclusion

Finviz is an excellent tool for identifying potential high-dividend stocks. By using its powerful filtering capabilities, you can quickly narrow down the vast universe of stocks and focus on companies that meet your specific criteria. However, remember that Finviz is just a starting point. Always conduct thorough research and due diligence before investing in any stock. Happy hunting, and may your portfolio be filled with sustainable, high-yielding dividends!