Our Dividend Quality Score is based on our assessment of Dividend Quality, Dividend Quality Trend, and Dividend Coverage.
We assign the following star ratings for Dividend Quality:
High Quality Dividend: 4-stars
Medium Quality Dividend: 2-stars
Low Quality Dividend: 1-star
To evaluate Dividend Quality Trend we look at how many years out of the last 5-years the company has paid out High, Medium, and Low Quality Dividends.
Consistent High Quality Dividends: 4-stars
All Medium Quality Dividends: 2-stars
Combination of Medium & Low Quality Dividends: 1-star
Persistent Low Quality Dividends: 0-star
Note that unlike Fundamental Analysis scores which are based on a company's performance relative to its peers the Dividend
Quality score captures the quality, trend and coverage of a company's dividend. However, we do provide charts and graphs in
our Dividend Quality reports that show the dividend quality performance of the company relative to its peers.