Is Orchid Island Capital a Great Dividend Stock?

When evaluating a dividend stock, there are several things to consider. How much is the dividend? How frequently is it paid? What is the payout ratio, meaning what percentage of earnings goes to the dividend? What is the yield rate -- i.e. the percentage of the share price that's paid out annually?

It's also important to look at the dividend trend. What trajectory is it on? Does it continually go up, or has it declined or stayed flat over the years? If the latter, what underlying problems are causing the dividend to decline?

These are some of the questions that will help you discern a good dividend stock from one that's not so good.

Source Fool.com