How to find the best dividend stocks to buy

Investors searching for reliable income often turn to dividend stocks—but not all high-yield stocks are created equal. With the Morningstar Investor Screener, you can quickly identify dividend-paying companies with strong growth potential, attractive valuations, and sustainable payouts.  

After signing in to Morningstar Investor, use this step-by-step guide to search for dividend stocks efficiently. Not a subscriber? Take Screener for a spin by starting a 7-day free trial and save $40 on your first year. 

Step 1: Navigate to the SCREENER tool and refer to the left-hand tool bar 

Step 2: Select STOCKS under Security Type 

Step 3: Click ADD FILTER and search for DIVIDEND PER SHARE GROWTH (10Y) and set the range you’d like to target. ≥ 5% is a good place to start. 

Why it matters: Companies that consistently grow their dividends over time are often financially stable and shareholder-friendly. 

Step 4: Scroll down the left-hand toolbar to DIVIDEND YIELD (TRAILING) and define your preferred range. ≥ 4% is a good place to start 

Why it matters: This ensures you’re focusing on stocks that generate meaningful income today. 

Step 5: Select 5- and 4-STARS under the MORNINGSTAR RATING FOR STOCKS  

Why it matters: 5- and 4-star stocks are considered undervalued relative to our analysts’ fair value estimates, offering potential price appreciation alongside dividend income. 

Bonus: Select WIDE or NARROW under ECONOMIC MOAT 

Why it matters: Companies with a moat have lasting advantages that help them stay ahead of competitors and generate strong returns over time. 

Analyze the results: After applying your filters, focus on identifying companies that combine strong dividend growth, attractive yields, and durable competitive advantages—these are often signs of sustainable income potential. Use this list as a starting point, then dig deeper into each company’s fundamentals to ensure alignment with your broader portfolio strategy. A disciplined review process can help you move beyond high yields to build a more resilient, long-term dividend portfolio.