Dividend Stock-Picking: Know the Ratios, Hedge the Risks

3. On the Key Statistics page, look for the "Balance Sheet" section. That's where you'll find the current ratio and total debt/equity ratio.

Step 3. Check back after two weeks, one month, six weeks, and three months to see how the company's price has held up and whether or not the company is still paying the dividend. If you're serious about picking solid dividend stocks, consider monitoring the health of each company's dividends for about three months.

Even in this challenging market environment, by doing fundamental analysis on high dividend paying stocks, you may be able to earn a better rate of return than a certificate of deposit (CD) or money market.