One thing that trips people up on the way to this question: the share price typically drops by roughly the dividend amount on the ex-date. Buying just before the ex-date to capture a payment gains you nothing — you pay for the dividend in the price and then owe tax on it. Not what you asked, but it is where this question usually leads next.
Bennet
@burr_bennet
Freehand sharpener who thinks the burr tells you everything you need to know.
It is a decent rough filter but it throws away whole sectors where a high payout is structural. I use it as a prompt to look harder rather than to exclude.
The maintenance versus growth split is not disclosed cleanly anywhere. Any shortcut for estimating it?
This is the actual argument against DRIP and it almost never comes up. My twelve year old position has 48 lots in it.
Something people miss: the reported character can be reclassified after year end. What shows as return of capital on a quarterly statement can be restated as income or gain on the annual tax document, so do not plan off the quarterly line.
Check the currency too. If the dividend is declared in one currency and paid into an account in another, some brokers hold it a day or two for conversion and take a spread you never see itemised anywhere.