A Review of How Dividend Safety Scores Performed During the …

Mar 16, 2021 · Dividends appeal to many investors in retirement because they theoretically represent a stable source of cash flow regardless of the stock market’s ups and downs. 2020 put that assumption to the test and provided us with an opportunity to show the effectiveness of …

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Simply Safe Dividends - Dividend Safety Scores™

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Since our scoring system's inception in 2015, investors who stuck with companies that scored above 60 (our Safe threshold) would have avoided 97% (836 of 856) of dividend cuts that've …

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97% Of Dividend Cuts Caught In Advance - Simply Safe Dividends

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Estée Lauder (EL) cut its dividend by 47%.The luxury cosmetics company faced a challenging demand environment in China (over 20% of sales). With an uncomfortably high payout ratio …

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FAQs about A Review of How Dividend Safety Scores Performed During the … Coupon?

What is dividend safety score?

For dividend stock investors, one of the most important things is dividend reliability. Dividend stock investors want as much as possible to avoid companies with inconsistent dividend payouts and future dividend cuts. So, that’s where Dividend Safety Score comes in. ...

How do you assess a dividend's safety?

Here are some of the main factors we use to assess a dividend’s safety: Here is a rough estimate of how much each group of factors impacts our Dividend Safety Scores: 1) Income Statement / Coverage metrics: 35-45% 2) Balance Sheet / Credit metrics: 25-35% 3) Dividend History / Longevity: 10-20% ...

Who created dividend safety scores?

Brian Bollinger created Dividend Safety Scores. Brian is a registered Certified Public Accountant and worked as an equity research analyst at a multibillion-dollar investment firm prior to starting Simply Safe Dividends (more on his background here ). How are Dividend Safety Scores Calculated? ...

Are dividend stocks safe?

Dividend stocks with scores between 61 and 80 are safe and have good odds of staying the same or growing. Scores from 81 to 100 are the best, with slim chances of facing cuts. Using dividend safety scores can make dividend investing easier than it already is. That way, even beginners can start making money with dividends. ...

Why is dividend safety important?

Print Article Dividend safety serves as the foundation for conservative income investing and stress-free retirement living. Companies that are able to continue paying and growing their dividends help us meet our investment goals and build wealth over time. ...

How important is a company's balance sheet in evaluating dividend safety?

Additionally, the strength of a company’s balance sheet is crucial in evaluating dividend safety. A strong balance sheet indicates that a company has a healthy mix of assets and liabilities, with sufficient liquidity to meet its financial obligations, including dividend payments. ...