One of Dividend.com’s original and award-winning tools continues to be our proprietary Dividend.com Ratings system. Using a sophisticated algorithm, our model rates more than 2,500+ stocks and 200+ dividend ETFs listed on Dividend.com. Using a combination of five different metrics, our model assigns an easily digestible score to every stock or fund listed on the site.
For income seekers and financial advisors, the easy-to-understand score allows them to quickly do due diligence and answer the simple question of whether or not to consider a dividend stock or ETF in their portfolio. Top ranking stocks are Dividend.com’s recommendations and form the backbone of our Best Dividend Stocks List.
Located on every ticker page and every table page, users can see a stock’s current overall rating, recent changes to the rating, as well as compare an individual stock or ETF to its sector’s average. This can help determine winners and losers in an industry.
Users also have the ability to dig into the individual metrics that make up the composite Dividend.com Ratings system. Here, users of Dividend.com can compare what is driving a stock’s overall performance and see which metric is making the difference.
For instance, the Relative Strength metric looks at how well a stock is performing with regard to share price and upward trends. The Yield Attractiveness metric searches for stocks in the yield’s “sweet spot” and helps narrow down growth and value opportunities. The Dividend Reliability metric looks at the long-term viability and safety of a dividend payout. The Dividend Uptrend metric hones in on stocks that offer the best combination of growth at a reasonable price. And, finally, the Earnings Growth metric focuses on securities that provide steady profit growth over the long haul. All of these metrics work together and form the “secret recipe” that provides great returns.
Investors can use these individual ratings to compare stocks and sectors to meet their goals. For example, looking for more price return from your investment? Comparing Relative Strength metrics of two dividend-paying securities can provide insight to which security has more forward momentum/capital gains potential. How about valuation? Looking at the Dividend.com Uptrend metric can quickly determine which stock is a better bargain.
Overall, Dividend.com Ratings can take the guesswork out of picking the right stocks or ETFs. The five metrics can be compared individually, or as a composite to help investors and financial advisors choose the right investment for their goals and portfolio.