Dividend Stock Tips From a BlackRock Expert

By Ben Steverman - 2011-09-15T23:52:35Z

Illustration by Dennis Pacheco

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Bloomberg's Dividend Screen

Shearer lists a good balance sheet, earnings growth, and profit margins better than the S&P 500 as his most important criteria for picking dividend stocks. A screen of Bloomberg data for U.S. large-cap stocks meeting these criteria reveals:

  • Dividends are paid by 389 stocks in the S&P 500, and 375 have yields of at least 0.25 percent. Of those, 160 have debt less than half their book value.
  • Of those stocks, 98 have increased earnings more than 10 percent from five years earlier. Analysts surveyed by Bloomberg estimate 50 of them will grow net income more than 10 percent in 2012.

Finally, 15 of those companies have profit margins higher than the S&P 500's 14 percent.