NEW YORK (TheStreet) -- With so many different investments options, investors often have a difficult time deciding which direction is the best one for them to take.
Here at TheStreet, we attempt to declutter the plethora of information available and present it to our readers in a way so that they can make wise investment decisions.
When you are looking for a solid income stream and not just an implied return on your money, it is hard to beat dividends. However, according to Dave Peltier Portfolio Manager for Dividend Stock Advisor, "Not all dividends are created equal. It is not always easy to decide which ones are good investments simply by looking at their stock offerings."
According to Peltier, "Being an investor is a little like having a crystal ball. You need to be able to look at the past, present and the future. In general when you're evaluating a dividend-paying stock, the primary thought should be the viability and sustainability of the dividend itself. We look at past performance. One way is to take a look at a company's dividend history. While it's never possible to predict the future from the past, some companies have exhibited a tendency to raise their payouts annually. It's also wise to seek out yields that are trending toward the higher end of the industry and the company's historical range."
Peltier continues, "However, earnings power alone is not the ultimate gauge for dividend stocks. A lot of the same fundamental homework that goes into picking growth stocks will still apply here, but you need to add a layer of fixed income-like analysis. In other words, it's also important to look at the present, which a company's current balance sheet. While a quick glance at the ratings from the major agencies help, we're generally looking for a manageable level of debt and a solid cash position. The clearest danger to a dividend is a lack of cash flow."
Peltier warns, "A dividend stock that stops paying its dividend is of little value to anyone's portfolio. Remember that while more than 75% of the companies in the S&P 500 offer a dividend, the payout remains a luxury, not a necessity. Other bills, namely interest on debt, must be paid before investors can be rewarded with a dividend. When a company has weak cash flow, the dividend is among the first costs to be cut."
Due to the myriad of dividend stocks that an investor can choose from, TheStreet Quant Ratings team has put together a list of 10 dividend stocks that yield over 4% rated most highly by over 32 major data factors. TheStreet Quant Ratings proprietary stock algorithm identified these dividend stocks as being both fundamentally and technically strong with lower potential for risk. Note that these ratings can change at any time. If you would like access to real-time ratings of these stocks, you can access them by subscribing to TheStreet Quant Ratings.
Here are the 10 dividend stocks with over a 4% yield that are the most highly rated by TheStreet Quant Ratings at this time...
#10: Grupo Aeroportuario Sureste (ASR)
Dividend Yield: 4.85%
Company Description: Grupo Aeroportuario del Sureste, S.A.B. de C.V. holds concessions to operate, maintain, and develop airports in the southeast region of Mexico.
TheStreet Ratings team rates GRUPO AEROPORTUARIO SURESTE as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate GRUPO AEROPORTUARIO SURESTE (ASR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
You can view the full analysis from the report here: ASR Ratings Report