How to Pick Dividend Stocks

This lesson is about how to pick dividend stocks in the asset allocation course. The speaker wants to provide an alternative to bonds as the 10-year Treasury is just trading around 3% and the 30-year Treasury is not more than 3.3-3.4%. An example of a good dividend stock is Intel. The speaker explains how to evaluate a stock’s dividend potential using the dividend, payout ratio, and interest coverage. A good dividend stock should have a steady increase of the dividend, a low payout ratio, a high interest coverage, and stability during financial crisis. The speaker also mentions a riskier dividend stock, GameStop, and stresses the importance of considering the value received compared to the cost.