Here's How to Find the Best Dividend Stocks

Owning dividend stocks can be an incredibly lucrative way to invest. In good times, many companies tend to raise their dividends, providing an increasing stream of cash flows to their owners. In not so good times, companies are often reluctant to lower their dividends as long as they can make the payment. That gives its shareholders money to buy even more when prices are low, without having to sell shares to do so.

Still, not every dividend-paying stock is a great investment. If a company can no longer cover its dividend and gets forced to cut it, its share price often falls. That cuts both the income stream and investors' access to cash to invest in better alternatives. To be successful as an income investor, you need to think beyond just the yield. Here are five tips to figure out how to find the best dividend stocks.

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Source Fool.com