To buy a top 10 dividend stock, research the most recent dividend yields for associated stocks, and then purchase these stocks through a brokerage account, notes Nasdaq and James Highland for the Houston Chronicle. Dividend yield represents annual dividend per share over stock price per share, according to Ken Little for About.com
The Nasdaq website contains a list of stocks and displays associated metrics including dividend yield, current price, indicated annual dividend, ex-dividend date and pay date. This information updates periodically and can be downloaded at any time as a CSV file. In addition, investors can find information about the companies that pay the associated dividends since company name and ticker data are also listed. Investors can sort the list to find the highest dividend yield, and then make a decision whether to purchase that particular stock.
To purchase a stock, an investor must first sign up for a brokerage account and determine how much capital to commit to the account, reports Highland. The Nasdaq website lists available brokerage service providers, and common options include Fidelity, Scottrade, Schwab and TradeStation. Each brokerage account has its associated fees and minimum balance requirements. After signing up for the brokerage account, an investor should fund the account and search for stocks to purchase. There are multiple purchase options, including buy market orders, buy stop orders, market orders, limit orders and stop orders, states Highland.