I've been building a new quality scoring system that rates dividend stocks on
a 10-point scale across nine weighted factors.
Each factor blends qualitative expert assessments from
independent sources with quantitative financial metrics, such
as payout ratios, growth rates, and leverage.
The goal is a single, defensible number that captures a dividend stock's
overall quality.
Here are the nine factors that contribute to the quality score of a stock:
- Dividend Safety
- Dividend Track Record
- Financial Strength
- Earnings & Revenue Growth
- Profitability & Earnings Quality
- Risk-Adjusted Returns
- Credit Rating
- Moat / Competitive Advantage
- Governance & ESG
Please read this article, which
covers Factor 1: Dividend Safety and explains why dividend safety
matters, which metrics I use, and how I score them.
Thanks for reading, and happy investing!
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