Dividend safety score
Analyze dividend sustainability and growth potential
Dividend Safety Score
Our proprietary dividend safety score metric helps investors evaluate the safety and sustainability of a company's dividend payments. The score is a crucial factor for investors relying on dividend income.
- Debt/Equity
- A low ratio can indicate a stable financial position, reducing the risk of future dividend cuts due to debt obligations.
- Debt/EBITDA
- A low ratio implies a company can generate sufficient earnings to cover debt, potentially making dividend payments more sustainable.
- Revenue Growth
- Consistent revenue growth signals a healthy business that can potentially maintain or increase future dividend payments.
- Dividend Growth
- Steady dividend growth indicates a company's commitment to returning value to shareholders, reducing the likelihood of dividend cuts.
- Forward Payout Ratio
- A low ratio suggests a margin of safety for dividend payments, as the company retains more earnings for reinvestment.
- Payout Ratio / Free Cash Flow
- A low ratio signifies that a company generates enough free cash flow to cover dividend payments, increasing dividend sustainability.
Extensive coverage of data
Rating thousands of dividend stocks across sectors, countries and industries.
- Stocks with scores
- 27,000+
- Historical data analyzed
- 3 years
- Supported exchanges
- 20+
- Key metrics
- 6
Frequently asked questions
- What is the dividend safety score?
Our proprietary dividend safety score evaluates the reliability and sustainability of a company's dividend payments. It considers factors such as payout ratios, debt levels, earnings growth, and dividend history to provide a numerical score that helps investors gauge the likelihood of a company maintaining or growing its dividend in the future.
- How is the dividend safety score calculated?
The score is calculated using a proprietary algorithm that considers several factors critical to dividend growth and sustainability. The algorithm assigns an overall score between 0 and 10, with 10 indicating our assessment of the safest dividends and 0 indicating our assessment of the least safe dividends.
- How should I use the dividend safety score in my investment decisions?
The dividend safety score should be used as a supplementary insight in your investment decision-making process. The score can help you identify companies with a potentially low risk of cutting their dividends in the future. However, it should not be the sole basis for your investment decisions since other relevant factors can influence a company’s dividend payout strategy.
- How often is the dividend safety score updated?
The dividend safety score is typically updated at least once per quarter following the release of a company's latest earnings report. However, the score may also be adjusted more frequently if there are significant changes in a company's financial metrics or dividend policy.