How to Find the Best Dividend Stocks

With benchmark interest rates more or less at 0%, it's tough sledding for anyone seeking lower-risk sources of investment income. Fortunately, there are plenty of dividend stocks out there that are worth a look. But in a world of tight balance sheets and too-good-to-be-true yields, how do you find them?

First, you have to start by narrowing down the universe of stocks out there. You might want to start with sectors where paying out dividends is part of the plan. Historically, this has meant utilities, master limited partnerships (MLPs), and real estate investment trusts (REITs).

REITs and MLPs are generally considered sources of pass-through income to investors and often do not pay income tax at the corporate level. They are generally known for big infrastructure investments, steady earnings, and modest growth. These stocks are generally required to distribute 90% of their income.

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Source Fool.com