9F Dividend Quality Scores: Factor 3 - Financial Strength

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 9F Dividend Quality Scores: Factor 3 - Financial Strength. It asks whether the balance sheet can carry the dividend through a downturn.

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