Dividend.Direct Quality Score
The Quality Score is a Dividend.Direct metric (0-90 points) measuring dividend sustainability and safety.
Components
| Factor | Max Points | Criteria |
|---|---|---|
| Dividend Streak | 30 | 25+ years = 30, 10+ = 20, 5+ = 10 |
| 5-Year CAGR | 25 | 10%+ = 25, 5%+ = 15, 0%+ = 5 |
| Payout Ratio | 20 | <50% = 20, <70% = 10 |
| FCF Coverage | 15 | FCF covers dividend = 15 |
Interpretation
- 70+: High quality - eligible for Tier 1
- 50-69: Good quality - eligible for Tier 2
- 30-49: Moderate quality
- <30: Lower quality - investigate further
How It's Used
Quality Score determines tier eligibility and is displayed on every stock page.
See It in Action
The Quality Score is a primary component of our Opportunity Summary, displayed at the top of every stock analysis.