- Debt/Equity
- A lower ratio value indicates a stable financial position, reducing the risk of dividend cuts due to debt obligations.
- Debt/EBITDA
- A lower ratio value implies the company can generate sufficient earnings to cover debt, making dividend payments more sustainable.
- Revenue Growth
- Checking 3 year CAGR growth. Consistent revenue growth signals a healthy business, more likely to maintain or increase 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 lower forward payout ratio suggests a greater margin of safety for dividend payments, as the company retains more earnings for reinvestment.
- Payout Ratio / Free Cash Flow
- A lower ratio signifies that a company generates enough free cash flow to cover dividend payments, ensuring the safety of dividends.
See Also
Dividend Yield Calculator – Calculate Dividend Yield OnlineSimply Safe Dividends - Dividend Safety Scores™Dividend Grades — About Seeking Alpha