Here’s How to Find the Best Dividend Stocks

Dividends are a great source of passive income for those looking to complement -- or replace -- their primary source of income. However, not all dividend stocks are created equal. Before putting your money in a dividend stock, you'll want to make sure it meets certain criteria.

Let's look into how to identify great dividend stocks, and then we'll turn our attention to one stock that's a great choice for income-seeking investors.

There are several dividend-specific metrics to consider when looking for great dividend stocks. But first, it's essential to consider the company's financial strength as well as its long-term prospects. After all, if a company is in danger of losing its competitive advantage or is drowning in debt with no end in sight, it is probably best to avoid it, dividends or no dividends. Since most companies aren't legally obligated to issue dividends to their shareholders, slashing (or outright suspending) dividend payments is one of the many ways a company in financial trouble can right itself.

Source Fool.com