Evaluate dividend investment opportunities, balancing current income with future growth.
Core Metrics
- Dividend Yield - Annual Dividend/Stock Price
- Dividend Payout Ratio - Dividend/Earnings (recommended <70%)
- Dividend Growth - Consecutive years of growth
- Free Cash Flow Coverage Ratio - FCF/Dividend (recommended >1.2)
Analysis Steps
- Calculate current dividend yield
- Assess payout safety (payout ratio, FCF coverage)
- Check growth history (consecutive years, CAGR)
- Assess sustainability (industry, moat)
- Calculate composite score
Scoring Criteria (0-100 points)
- Yield (0-25 points): >6% excellent, 4-6% good, 2-4% average
- Safety (0-35 points): payout ratio <50% excellent, <70% good
- Growth (0-25 points): >10 consecutive years excellent, >5 years good
- Sustainability (0-15 points): moat score
Risk Warnings
- ⚠️ A high dividend yield may indicate operational difficulties
- ⚠️ Check whether dividends come from borrowing
- ⚠️ Dividends in cyclical industries are unstable
Tools and Detailed Documentation
- 📁 Detailed Analysis Framework
- 📁 Dividend Screening Criteria
- 📁 Rust Implementation Reference
- 🔧 dividend_analyzer.py - Dividend Analysis Tool