Dividata provides unofficial proprietary ratings for dividend-paying stocks in the NYSE and NASDAQ exchanges. These ratings should not be considered investment advice or endorsement of rated stocks, but more as a general indicator as to the relative performance of such stocks. Please see below for a detailed explanation on how these ratings are calculated.
This indicator measures a stock's current dividend yield, and compares it to similar stocks and historical yields.
A stock's rating on its dividend yield is calculated by evaluating similar stocks in the same sector, and ranking it compared to its peers.
This rating, on a scale of 1 (Poor) to 5 (Excellent) comprises 50% of the total score:
| Criteria | Rating |
|---|---|
| Top 20% of yields in the stock's sector | |
| Top 40% of yields in the stock's sector | |
| Top 60% of yields in the stock's sector | |
| Top 80% of yields in the stock's sector | |
| Top 100% of yields in the stock's sector |
The rating for dividend history is determined by looking back at the frequency of historical dividend payments.
This rating, on a scale of 1 (Poor) to 5 (Excellent) comprises 16.7% of the total score:
| Criteria | Rating |
|---|---|
| 20 or more years of dividend payments | |
| 10 or more years of dividend payments | |
| 5 or more years of dividend payments | |
| 2 or more years of dividend payments | |
| Less than 2 years of dividend payments |
This indicator measures a stock's history of dividend increases; consistent payments (without a decrease) over time will produce a favorable rating.
This rating, on a scale of 1 (Poor) to 5 (Excellent) comprises 33.3% of the total score:
| Criteria | Rating |
|---|---|
| 20 or more years without a dividend decrease | |
| 10 or more years without a dividend decrease | |
| 5 or more years without a dividend decrease | |
| 2 or more years without a dividend decrease | |
| Less than 2 years without a dividend decrease |
The overall rating is a weighted average of the three other rated categories listed below. It is a general indication of a dividend's history.
| Criteria | Rating |
|---|---|
| Overall score from 4.50 to 5.00 | |
| Overall score from 3.50 to 4.49 | |
| Overall score from 2.50 to 3.49 | |
| Overall score from 1.50 to 2.49 | |
| Overall score from 1.00 to 1.49 |