We found 11 online brokers that are appropriate for Trading Dividend Stocks.
'Dividend Yield' is referred to as the financial ratio revealing the amount of money a company pays in the form of dividends to its shareholders compared to the stock price. It is calculated by dividing the annual dividend by the price. Some top-level companies pay constant dividends to build confidence among investors. This results in a rise in the share price. In this article, titled 'Dividend Stocks', we will take a deeper look at the advantages and disadvantages of dividend yields, and how best to understand them.
It is an estimate of the returns of a stock investment with respect only to dividends, which rise with the fall of stock prices, and vice versa. Sometimes it can be extremely high for stocks that fall in value quickly.
New companies usually pay lower dividends, but it is not true that all mature companies pay higher dividends. In fact, mature companies which are not growing quickly make high dividend yield payments. Added to this, companies in the 'staple' or 'utility' segments pay the highest average yield.
However, the dividend yield of tech stocks pays a lower dividend yield. Qualcomm Incorporated had a twelve month dividend of $2.48 by May 2020. Its current price is $78.83. This means, the new dividend yield would be 3.15%.
Not all companies provide enough information about dividend stocks. The yield is high amongst real estate investment trusts (REITs). However, these are from ordinary dividends and differ from qualified dividends. The first one is taxed as regular income, while the second is taxed as capital gains.
Even the business development companies (BDCs) and master limited partnerships (MLPs) offer high dividend yields.
It is found that dividend stocks offer amplified returns. One study revealed that 78 percent of the S&P 500 returns since 1970 are from dividends. It is assumed that investors mostly reinvest dividends in order to earn more dividends.
It is true that high dividend yields look very attractive, but it is equally true that non-dividend stocks offer higher returns if the value rises and it is considered that the company is growing.
It is not important to evaluate a company based on its dividend yield as many offer high yields when the stock value is falling.
Hence, investors are advised to exercise caution while evaluating. We can understand better with an example. General Electric underperformed between 2015 and 2018. During that period, the stock prices fell due to declined earnings, but the dividend yield moved up from 3 percent to more than 5 percent.
Dividend yield reveals the rate of return in the form of cash dividends, while dividend payout ratio refers to the net earnings paid out as dividends.
Even though the term 'dividend yield' is used more often, many believe it is better to look at the dividend payout ratio. It is connected more closely to the cash flow of a company.
The dividend yield reveals total dividends paid to shareholders over the years. It is in the form of a percentage and not in the actual dollar amount.
If the stocks of Company A are being traded at $20, and the annual dividends paid are $1 per share, its dividend yield is 5 percent. If the stocks of Company B are being traded at $40 and the annual dividends are the same at $1 per share, its dividend yield is 2.5 percent.
It is, in fact, the financial ratio that reveals the percentage of a share price that is paid each year as dividends. Let's have a look at another example. If a company offers a dividend of $1,000 when the share price is $20, the dividend yield is 5 percent.
Some investors who are retirees rely on these dividends to get regular income. The dividend yield is meaningful to them, and so it is important for them to select the high-dividend stocks of companies that have long track records.
Dividend stocks are most sought-after by such investors who look for regular income, or are trying to diversify their portfolios. However, it is important to check the track record of the company before going for its stocks. It is best for amateur investors who are looking for assured income without risking their capital.
We've collected thousands of datapoints and written a guide to help you find the best Dividend Stocks for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best Dividend Stocks below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Dividend Stocks trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Dividend Stocks.
Compare Dividend Stocks min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Dividend Stocks. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Dividend Stocks that accept Dividend Stocks clients
Broker |
eToro
![]() |
IC Markets
![]() |
XTB
![]() |
AvaTrade
![]() |
FP Markets
![]() |
Plus500
![]() |
Pepperstone
![]() |
EasyMarkets
![]() |
XM
![]() |
FXPrimus
![]() |
SpreadEx
![]() |
Rating | |||||||||||
Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), British Virgin Islands Financial Services Commission (BVI) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | 200 | No minimum deposit | 250 | 100 | 100 | 200 | 100 | 5 | 100 | 1 |
Funding |
|
|
|
|
|
|
|
|
|
|
|
Used By | 20,000,000+ | 180,000+ | 250,000+ | 200,000+ | 10,000+ | 15,500+ | 10,000+ | 142,500+ | 3,500,000+ | 10,000+ | 10,000+ |
Benefits |
|
|
|
|
|
|
|
|
|
|
|
Accounts |
|
|
|
|
|
|
|
|
|
|
|
Spreads |
|
|
|
|
|
|
|
|
|
|
|
Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, Mac, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
Support |
|
|
|
|
|
|
|
|
|
|
|
Learn More |
Sign
Up with etoro |
Sign
Up with icmarkets |
Sign
Up with xtb |
Sign
Up with avatrade |
Sign
Up with fpmarkets |
Sign
Up with plus500 |
Sign
Up with pepperstone |
Sign
Up with easymarkets |
Sign
Up with xm |
Sign
Up with fxprimus |
Sign
Up with spreadex |
Risk Warning | 67% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 72% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money | Your capital is at risk | Your capital is at risk | Losses can exceed deposits | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
AvaTrade Demo |
FP Markets Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus Demo |
SpreadEx Demo |
Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, IN, PK, BD, NG , ID, BE | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | US, TR |
You can compare Dividend Stocks ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Dividend Stocks for 2021 article further below. You can see it now by clicking here
We have listed top Dividend Stocks below.