TrackYourDividends
Dividend Safety Score
TrackYourDividends’ proprietary measure of a company’s likelihood to continue to pay and grow their dividend in the future. Good companies that you can buy and hold forever are the cornerstone to a strong dividend portfolio.
Steady Dividend Income
Focus on the Dividend Stream
Selecting the right dividend payers can supply consistent, growing payments each and every year. The TYD Dividend Safety Score gives you an easy way to evaluate your holdings.
We want to separate the financially stable, dividend-focused companies from those with the highest risk.
Ask Yourself:
5 Critical Dividend Safety Components
Understanding the most common dividend investing mistakes is critical for long-term success. By learning to avoid these pitfalls, you can build a more durable and reliable portfolio designed to deliver sustainable results.
Payout Ratio
Definition: The percentage of a corporation’s net income that is paid out in dividends.
Impact: HIGH
Why? Dividends come from earnings. The percentage of those earnings the company pays is an indicator of their commitment to dividends. Of course, too large of a payout makes continued growth risky and cuts likely if earnings decline.
Consecutive Payment Growth
Definition: The total consecutive years a company has increased its dividend payment.
Impact: HIGH
Why? Nothing points to dividend safety like a recent increase. A pattern of consecutive increases highlights a company’s commitment making annual, growing payments.
Dividend Growth Rate
Definition: The percentage increase of the dividend payment over the previous 5 years
Impact: Medium
Why? A growing payment helps keep up with inflation and demonstrates a devotion to dividends.
Earnings per Share (EPS) Trend
Definition: Earnings per share growth measured over the previous 5 years.
Impact: Medium
Why? Growing sales, and more importantly, profit, will allow a company to continue to pay their regular dividend and potentially increase it.
Dividend Yield
Definition: Annual dividend payment divided by the current market price
Impact: Low
Why? Simply paying a dividend puts a company ahead of its competition with no payments. Without dividends, stocks are little more than a piece of paper.
Dividend-Focused Stock Analysis
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