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 have conducted extensive research and analysis on over multiple data points on Dividend Stocks to present you with a comprehensive guide that can help you find the most suitable Dividend Stocks. Below we shortlist what we think are the best Dividend Stocks after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Dividend Stocks.
Selecting a reliable and reputable online Dividend Stocks trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Dividend Stocks more confidently.
Selecting the right online Dividend Stocks trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for Dividend Stocks trading, it's essential to compare the different options available to you. Our Dividend Stocks brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a Dividend Stocks broker that best suits your needs and preferences for Dividend Stocks. Our Dividend Stocks broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Dividend Stocks.
Compare Dividend Stocks brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Dividend Stocks broker, it's crucial to compare several factors to choose the right one for your Dividend Stocks needs. Our comparison tool allows you to compare the essential features 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 | IC Markets | Roboforex | eToro | XTB | XM | Pepperstone | AvaTrade | FP Markets | EasyMarkets | SpreadEx | FXPro |
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | RoboForex Ltd is regulated by the FSC, license 000138/437, reg. number 128.572. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), 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 | Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049), Central Bank of Ireland | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), FSCA (FSP Number 50926), Capital Markets Authority (CMA), Securities Commission of the Bahamas (SCB) | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) | Financial Conduct Authority (FCA) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Securities Commission of the Bahamas (SCB) |
Min Deposit | 200 | 10 | 100 | No minimum deposit | 5 | 200 | 100 | 100 | 100 | 1 | 100 |
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Used By | 180,000+ | 1,000,000+ | 30,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 300,000+ | 10,000+ | 142,500+ | 10,000+ | 1,866,000+ |
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Platforms | MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, cTrader, IRESS, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, TradingView, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, cTrader, Tablet & Mobile apps |
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Up with fxpro |
Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 76% of retail investor accounts lose money when trading CFDs with this provider. | 76-85% 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. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.89% 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. | 75-95 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, 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, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
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 2024 article further below. You can see it now by clicking here
We have listed top Dividend Stocks below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.