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Thursday, March 26, 2026

My 9F Dividend Quality Scores: Factor 1 – Dividend Safety

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:
  1. Dividend Safety
  2. Dividend Track Record
  3. Financial Strength
  4. Earnings & Revenue Growth
  5. Profitability & Earnings Quality
  6. Risk-Adjusted Returns
  7. Credit Rating
  8. Moat / Competitive Advantage
  9. 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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