Warren Buffett has famously said “Price is what you pay. Value is what you get.” Using that quote as a guide, Buffett has long been a fan of buying stocks at bargain prices – stocks that are trading at a discount to a stock’s intrinsic value or growth potential. The quote is also the reason why a $1,500 per share stock can be cheap, while a $3 stock can be very expensive. Value determines what you’re buying.
One of the interesting side effects of Buffett’s fascination with value and bargain stocks is that he’s also a major dividend investor. His portfolio is full of stocks that continue to pay him some hefty income every quarter and he uses that income to, well, buy more stocks.
This begs the question, can regular Joes like us use value metrics to find strong dividend payers, potentially during downturns and periods of volatility? The answer is a resounding yes.
Use the Dividend Screener to find high-quality dividend stocks based upon 16 parameters. Stocks with the highest DARS ratings are Dividend.com’s current recommendations to investors.