Sources and more resources. A year after reducing its dividend by 19% to conserve cash. Dividend Yield and Dividend Payout Ratio Relationship Dividend Yield is only one of many factors you should consider when analyzing a company stock. Royal Dutch Shell plc (RDS.B) cut its dividend by 66%. Unless debt is repaid, interest income is unavoidable, unlike dividends which can be cut if necessary. The discount rate is 3.25% and the dividend growth rate is 2.75%. Cash flow is king But there’s a better way to determine if the dividend is safe. What this means is that you buy a stock when its price is not only lower than or equal to your calculated fair price, but that it’s significantly lower. As a quick rule of thumb, I view dividend payout ratios below 60% as sustainable. Value Investors have been using The Intrinsic Value calculation since Benjamin Graham… Barclays PLC (BCS) suspended its dividend. This gives you an 87.5% ‘margin of safety’. Lloyds Banking Group plc (LYG) suspended its dividend. Your research has made it possible for me to retire early and enjoy a low-stress life." Global Partners LP (GLP) reduced its dividend by 25%. Amgen scores 23 points of a possible 25, giving it the third-highest grade possible. Southern Copper Corporation (SCCO) cut its dividend by 50%. Dividend Safety Scores are available for thousands of stocks, and scores range from 0 to 100. DOW 31,148.24. higher dividends are more likely to be cut, How Dividend Investors Make Money With Dividend Aristocrats, Dividend Yields by Sector; Relative Yields Matter, F*ck the Dividend Aristocrats, We’re Building a Better Dividend Portfolio Instead. You can view your received and scheduled dividends in your mobile app: Go to the Account tab in the bottom right corner. Medley Capital Corporation (MCC) suspended its dividend. Braemar Hotels & Resorts (BHR) suspended its dividend. Coca-Cola European Partners plc (CCEP) suspended its dividend. Companies like the dividend aristocrats that have raised their dividends for at least 20 consecutive years have a very high probability of future dividend growth, and a company that has never raised its dividend has a very low probability. Evolution Petroleum Corporation (EPM) slashed its dividend by 75%. Urstadt Biddle Properties (UBP) slashed its dividend by 75%. Regardless, our scoring system now handles smaller companies more conservatively, reflecting their generally more concentrated business activities and more dynamic capital allocation policies. This factor is very similar to the FCF growth that we examined in #9. These warning signs are in the form of revenue and EBITDA growth, which have been negative for IBM as it trims its legacy business and displaces it with M&A in various other higher growth businesses. The 11 Factor Dividend Safety Score is examined below: 1. Flexsteel Industries (FLXS) slashed its dividend by 77%. Kingstone Companies (KINS) cut its dividend by 37%. Latest Quality Score and Dividend Safety Ranking Changes due to Covid-19 Crisis Dividend Geek • March 26, 2020 • 0 Comments The following companies have recently had their Simply Safe Dividends ranking downgraded, which; in turn has lowered each companies overall quality score listed on our site (where 25 points is the highest score). Dividend Safety Scores cut through the noise to assess how likely a company is to put its dividend on the chopping block. Dividend Discount Model = $1.50 / (0.0325 – 0.0275) = $1.50 / 0.005 = $300. 3. Foresight Energy LP (FELPQ) suspended its dividend. GasLog Ltd. (GLOG) cut its dividend by 67%. Our dividend safety algorithm gives you a safety score between 1 and 100 indicating the safety of a stock's dividend based on the fundamental data behind the stock! The higher the interest coverage ratio the better. In our article on dividend payout ratio, we used the example of Pepsico to assess their dividend safety. 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