What Makes a Stock a Best Income Stocks constituent?
This screen identifies high-quality income producers by filtering for a minimum $2 billion market cap and a dividend yield of at least 2%. By focusing on established firms like Johnson & Johnson, which has raised its dividend for over 60 consecutive years, this screen filters out speculative growth plays that lack the cash flow to sustain reliable payouts.
Filter for Scale and Stability
The $2B market cap floor excludes volatile micro-caps. For example, stable giants like Procter & Gamble maintain dividends even during market downturns like 2008.
Demand Meaningful Yields
A 2% floor ensures the stock is an income vehicle, not a growth stock. Compare this to Apple, which often yields under 1%, making it a poor choice for pure income seekers.
Validate Total Return
We require a positive 1-year return to avoid value traps. For instance, AT&T's high yield in 2021 was offset by a significant share price decline, hurting total returns.