3 Top Dividend Stocks for Beginning Investors

How would you like to be paid simply for owning a company's stock? Well, when you invest in a company that pays a dividend, that's what happens. In fact, investing in dividend stocks is a great way to earn passive income and finance your future. Of course, it's important to choose the right dividend stocks, and there are definitely key things to look for before purchasing. So, without further ado, here are three great dividend stocks for beginning investors, and why they could make great investments. Today we'll be focusing on the defense industry.

When it comes to investing in stocks, there are a number of things to watch for in terms of dividends, but four are arguably the most important: 1. The payout ratio -- How much of a company's cash flow is going toward paying out the dividend. 2. The current yield -- Used to calculate the relative attractiveness of dividend-paying stocks; dividends per share divided by current share price, which shows how much cash flow you're getting for your investment. 3. Dividend growth -- How long a dividend has grown. 4. Annual payout -- How much money you get annually per share. With the above in mind, let's look at Boeing (NYSE:BA), General Dynamics (NYSE:GD), and Lockheed Martin (NYSE:LMT).

Source: Motley Fool

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