Check how safe a dividend really is
A free, rules-based score that blends payout ratio, dividend growth, payment history and yield into one clear 0-100 rating. Try the example below, then run it on your own portfolio.
See a dividend safety score in action
Dividend safety & trend
Demo stock · USDThe payment looks sustainable on current figures, with nothing alarming in the record.
- Payout ratio: 52% of earnings, comfortable cover
- Dividend growth: +5.3% a year over 5y
- Increase streak: No multi-year run of held or raised payments
- Cut history: 1 cut in 10 years of data
- Yield level: 3.8% · within a typical range
Dividend per share by year
Rules-based summary of third-party data for information only. Not financial advice, verify figures with the company's own reporting.
Like the result? Create a free account to save it to your portfolio · or keep playing, no signup needed.
Payout ratio check
See whether earnings comfortably cover the dividend.
Growth trend
Spot shrinking, flat or rising payments over 1, 3 and 5 years.
Cut history
Past cuts and years-without-a-cut both affect the score.
How the dividend safety score works
The score starts at 50 and moves up or down based on five public data points. Payout ratio is the single biggest factor: a company paying out most of its earnings has little cushion if profits fall. Dividend growth over one to five years shows whether management has been able to raise the payout. Consecutive years without a cut and the total number of cuts in the available history measure reliability. Finally, the current yield is used as a sanity check — very high yields often mean the market expects a cut.
The result is a score from 0 to 100 and a label: Very safe, Safe, Borderline or Fragile. If there is not enough public data, the security is shown as Unrated rather than guessed.
What each rating means
- Very safe (80-100) · Well-covered payout, steady growth and a long history of held or raised dividends.
- Safe (62-79) · The dividend looks sustainable on current figures, with no obvious stress.
- Borderline (42-61) · The payout is happening, but cover, growth or history leaves less margin.
- Fragile (0-41) · Thin cover, falling payments, past cuts or an extreme yield suggest caution.
Why this matters for income investors
A dividend tracker is not just about how much you receive; it is about whether those payments are likely to keep coming. A single cut can wipe out months of planned income. By scoring every holding in one place, you can see concentration risk at a glance and decide whether to add, hold or trim before a cut happens.
Part of a complete dividend toolkit
The safety score works alongside the free calculators and trackers: the dividend yield calculator checks what the income looks like today, the DRIP simulator models reinvestment, the FIRE calculator ties income to your independence number, and the portfolio analysis tools show concentration and yield-on-cost. The score adds the sustainability lens that makes all the others useful.
Frequently asked questions
What is a dividend safety score?
A dividend safety score is a 0-100 rating that estimates how likely a company's current dividend is to be sustained. It weighs payout ratio, earnings cover, dividend growth trend, years without a cut, and whether the yield looks unusually high.
How is the dividend safety score calculated?
It starts from a baseline of 50 and adjusts up or down based on five signals: payout ratio (the biggest driver), dividend growth over the last 1-5 years, consecutive years the payout was held or raised, any past cuts, and the current yield level.
What is a good payout ratio?
A payout ratio below 60% of earnings usually leaves plenty of room. 60-85% is moderate. Above 85% the company has little margin if earnings dip, which is why the score penalises very high payout ratios.
Does a high yield mean the dividend is unsafe?
Not always, but yields above 8% often mean the market is pricing in a cut. Very high yields are treated as a warning sign and the score is adjusted down unless cover and growth are strong.
Can I see the safety score for my own holdings?
Yes. Add your holdings to a free Investing Dividend Tracker portfolio and each stock shows its live dividend safety score, alongside projected income, ex-dates and payment history.