Dividend Safety Scores
The Dividend Safety page rates each holding's dividend reliability on a 0-100 scale.
Scoring Components
| Component | Weight | What It Measures |
|---|---|---|
| Payout Ratio | 25 pts | Dividends vs earnings (GAAP + FCF) |
| FCF Coverage | 20 pts | Free cash flow covers dividend payments |
| Growth Streak | 20 pts | Consecutive years of dividend increases |
| Earnings Stability | 15 pts | Consistency of earnings over 5 years |
| Debt Levels | 10 pts | Debt-to-equity assessment |
| Red Flags | -10 pts | Payout >100%, negative FCF, declining revenue |
Special Handling
- REITs — Uses FFO (Funds From Operations) instead of GAAP earnings
- ADRs — Currency mismatch guard caps payouts at 200%
- Preferred Stocks — Fixed coupon scoring model
- High-Depreciation Sectors — FCF check at 80% GAAP (catches Utilities, Energy, Tobacco)
Dividend Streak Badges
| Badge | Requirement |
|---|---|
| Dividend King | 50+ years of consecutive increases |
| Dividend Aristocrat | 25+ years (S&P 500 member) |
| Dividend Achiever | 10+ years of consecutive increases |
Score Ranges
| Score | Rating | Meaning |
|---|---|---|
| 80-100 | Very Safe | Extremely reliable dividend |
| 60-79 | Safe | Dividend likely maintained |
| 40-59 | Moderate | Some risk, monitor closely |
| 20-39 | Unsafe | Significant cut risk |
| 0-19 | Danger | Cut is likely |
Caching
Scores are cached in 3 layers: Memory (30 min) → Database (24 hrs) → Fresh API. Pre-computed nightly for all portfolio holdings.