What are Dividend Grades and where can I find them?

If you are a dividend investor, and you want to ensure that you own stocks with solid and safe dividends, which will grow their dividends in the future, then this Tab will help you achieve your goal.

 

Below is a video explaining how to determine any Company's Dividends' strength and future.

 

Dividend information is available on every symbol page of a stock that pays it.

Dividend Scorecard: It shows how the dividend stock is rated in terms of Relative Yield, Dividend Consistency, Dividend Safety, and Dividend Growth.

Dividend Grades: help investors ensure they own stocks with strong, safe, and growing dividends. The Dividend Grades are simple and easy to use but are tremendously sophisticated under the hood.

The Dividend Yield Grade: tells you how attractive the stock's dividend yield is compared to others in its sector. This is better than comparing the stock's yield to all other stocks because investors want to know which are the highest yielding stocks in each sector. The Dividend Yield Grade takes into account not only the current dividend yield but the yield based on analysts' projections of the dividend one and two years from now. This is far more powerful and valuable than using only the current yield.

If you scroll down the page you will see information on Yield on Cost and Dividend Yield History.

The Dividend Growth Grade: tells you the company's potential to grow its dividend in the future. Many investors mistakenly assess a company's dividend growth potential using only backward-looking data, namely the company's past track record of dividend increases. But the company's past track record is only half the story. So our Dividend Growth Grade also takes into account the company's projected future growth in revenue, profits, and free cash flow. This leads to far better predictive performance, allowing investors to find the stocks most likely to grow their dividends strongly in the future. We feel our Dividend Growth Grade is the best tool for dividend growth investors that has ever been developed.

If you scroll down the page you will see information on Dividend Growth History.


    The Dividend Safety Grade:
    tells you how safe the stock's dividend is. We believe our Dividend Safety Grade is a better indicator of the risk a company will be forced to cut its dividend than anything else available. Our Dividend Safety grade is based on 13 underlying financial metrics, which include estimates of future cash flow and earnings. These metrics are compared to those of other stocks and then correctly weighted to provide the most accurate gauge of a company's dividend safety. Our Dividend Safety Grade is a game-changer for people reliant on dividend income.

    If you scroll down the page you will see information on the Payout ratio.

    The Dividend Consistency Grade: measures how consistently the company has paid a dividend and how consistently the company has raised its dividend in a single grade.

    In combination, the Dividend Grades help dividend investors ensure their dividend income is safe, and that their dividends and income will increase over time.

      If you scroll down the page, you will see information on Dividend History, Price & Dividend History, and Dividend Payout History.

      Dividend Estimates: Estimates are provided by FactSet and are gathered from sell-side Wall Street analysts. The estimates try to predict future dividend payouts and allow investors to see a dividend payout forecast 2-3 years into the future.

      On the mobile web or in the Seeking Alpha iOS or Android app, you’ll see the Dividend on the main symbol page as shown below.

      Frequently Asked Questions

      How frequently are Seeking Alpha’s Dividend Grades updated?

      Every day, before the U.S. market opens.

      How do Seeking Alpha’s Dividend Grades differ from Seeking Alpha’s Factor Grades?

      The Dividend Grades are built for investors looking for income and income growth, rather than stock price performance. They therefore don’t take into account momentum and earnings revisions, both of which are strongly predictive of a stock’s future direction, and are included in our Factor Grades and overall Quant Rating. Dividend Grades also cover only stocks which pay dividends, whereas Factor Grades and the overall Quant Rating also cover thousands of stocks which don’t pay dividends.

      Who is responsible for Seeking Alpha's Dividend Grades, and what credibility do they have?

      Seeking Alpha's Quant Ratings, Factor Grades, and Dividend Grades are designed and managed by Steve Cress. Steve has 30 years of experience in equity research, quant strategies and risk management, and founded quant hedge fund Cress Capital Management. Steve is now Seeking Alpha's Head of Quant Strategy.

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