Updated October 12, 2024
This article outlines the method that I use to pick individual dividend stocks. If you do not have the time to do research on individual stocks, a better option might be to invest in Exchange Traded Funds also known as ETFs. Read: Guide to Exchange Traded Funds

When I pick individal stocks, I like to find companies that have a long history of raising their dividends. I want a stock that is a Dividend Aristocrat or a Dividend King or at the very least, a Dividend Achiever.
A Dividend Aristocrat is a stock that has raised their divided for at least 25 years in a row. They made it through the .com crash of 2000 and the Great Recession of 2008 without it affecting their dividend payout. Not only did they not cut their payout, but they have kept raising it every single year during good times and bad times.
A Dividend King is a stock that has raised it’s dividend for at least 50 years in a row. These companies made it through the stock market crash of 1987, the .com crash of 2000, the Great recession of 2008 and all of the other economic downturns that we have seen for the last 50 plus years. They have contiued to raise their dividends through it all.
A Dividend Achiever is a company that has raised their dividend for at least 10 years in a row. A lot of these companies are well on their way to becoming Dividend Aristocrats.
I also like a stock to have a Dividend Safety Rating of “Safe” or “Very Safe“. One of my favorite websites that I use for screening dividend stocks is SimplySafeDividends.com. They have a long track record of ranking stocks for their dividend safety and determining whether a stocks dividend is in danger of getting cut. Here are links to their website that shows a list of stocks in all 3 categories along with their current dividend yield and Dividend Safety Rating:
Dividend Aristocrats
Dividend Kings
Dividend Achievers
I also like a stock to be a member of the Dow Jones Dividend 100 Index. These are the top 100 dividend stocks according to Dow Jones. I like them to be a Top 10 or Top 20 or at the very least, a Top 30 member of the index. SCHD is an ETF that tracks the Dow Jones Dividend 100 Index. Here is a link to their website that shows all 100 stocks that are currently in the index:
Dow Jones Dividend 100 Index
Once I find a stock that meets all of these requirements, I like to go to SeekingAlpha.com and find the 5 year dividend growth rate. To find the dividend growth, put the ticker symbol in at the top of the page and find the stock. Then click on the dividends tab and scroll towards the bottom of the page. This is where you will find the 5 year growth rate. Sometimes, a high dividend growth rate is more important than a high dividend yield. For example, if one stock has a dividend yield of 4% and a dividend growth rate of 10%, it can be a better long term investment than a stock with a 5% yield but a growth rate of only 1%. I also look at the stock price performance over the past 5 years to see if the stock price has been going up or down compared with the S & P 500. You can find the five year chart by clicking on the Summary tab.
I try to pick stocks that have a long history of raising their dividends and that have the best combination of dividend yield, dividend growth and dividend safety. I also like to see a stock with a steadily rising stock price.
No matter what method you use for picking dividend stocks, there is no guarantee that the dividend will not get cut and there is no guarantee that the price will not go down after you buy a stock. But if you do your research and spread your investments over at least 10 different stocks, chances are you will do pretty good over the long term.

My Rules For Investing:
Never invest in anything that you do not completely understand.
Do not invest in a stock unless you are willing to hold it for the long term.
Never put more than 10% of your money into any one stock.