Stocks that pay dividends year after year can provide steady long-term growth for your investments, despite short-term market ups and downs.

There are two kinds of dividend stocks: high yielders, which typically pay above 3% or so (the S&P 500 yields 1.6%), and dividend growers, which boost their payout regularly.

Be wary when a stock offers too much of a good thing. Non-utility stocks that yield more than 5% (divide the annual dividend by the current share price to get the yield) may be companies in distress or in risky turnaround situations. Be sure the company can sustain the payout -- is it generating enough free cash flow? It should have enough cash left over to pay the dividend after it pays expenses, interest, taxes and capital expenditures needed to run the business. Otherwise, it may have to cut its payout or dip into previous years' profits to cover it.

You can find a batch of dividend-growing stocks by screening for these criteria:

1. Dividend yield: More than or equal to 2%
   
2. Market capitalization: More than or equal to $1 billion
   
3. Earnings growth over the past five years: More than or equal to 10% per year
   
4. Consecutive years of dividend growth: More than or equal to ten years
   
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To focus in on higher yielders, screen for these criteria:

1. Yield: More than or equal to 4%.
   
2. Market capitalization: More than or equal to $1 billion.
   
3. Earnings growth over the past five years: More than or equal to 5% per year.
   
4. Projected three to five years earnings growth: more than or equal to 5% per year.
   

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Enter your own search criteria