Dividend Analysis

How to analyze dividend stocks, evaluate safety, and identify the best opportunities.

How to Analyze Dividend Stocks: 10 Key Metrics

The essential metrics every dividend investor should evaluate before buying.

12 min

Dividend Safety: How to Evaluate Cut Risk

A framework for assessing whether a company's dividend is at risk of being cut.

10 min

FCF Payout Ratio: Better Than Earnings Payout?

Why the free cash flow payout ratio may be a better indicator of dividend safety.

8 min

Analyzing Dividend Growth Rates: 1, 3, 5, 10 Year

How to interpret dividend growth rates across different time periods.

7 min

Dividend Coverage Ratio Explained

Using the coverage ratio to assess how well earnings support the dividend.

6 min

10 Red Flags in Dividend Stocks to Avoid

Warning signs that a high-yield dividend stock may be a trap.

9 min

Sector-by-Sector Dividend Analysis

Typical yields, payout ratios, and growth rates across market sectors.

11 min

How to Read Dividend Announcements

Understanding dividend declarations, special dividends, and what they signal.

6 min

How Debt-to-Equity Ratio Affects Dividend Safety

Why leverage matters for dividend sustainability and what thresholds to watch.

7 min

Why Earnings Growth Drives Dividend Growth

The relationship between EPS growth and future dividend increases.

7 min

Dividend Cuts: Why They Happen and How to Avoid Them

Major historical dividend cuts, common causes, and early warning signs.

9 min

Special Dividends: What They Are and What They Signal

One-time dividend payments — why companies issue them and what they mean.

6 min

Average Dividend Yield by Sector: Complete Comparison

Average yield, payout ratio, and growth rate for each of the 11 GICS sectors.

8 min

How DividendRanks Grades Work: Methodology

How our A+ to F grading system scores dividend stocks across yield, growth, safety, consistency, and performance.

8 min

How to Calculate Dividend Growth Rate

Calculate CAGR from historical dividends using a simple formula. Step-by-step with examples from real stocks.

7 min

How to Calculate Preferred Dividends: Formula & Examples

Preferred dividends equal par value times the stated rate. Learn the formula for cumulative and non-cumulative shares.

7 min

Where Do Dividends Go on the Balance Sheet?

Declared but unpaid dividends appear as a current liability. Paid dividends reduce retained earnings and cash.

7 min

Do Dividends Go on the Income Statement?

No — dividends are not an expense and do not appear on the income statement. They reduce retained earnings directly.

6 min

Is Paying Dividends a Financing Activity? Cash Flow Guide

Yes, dividend payments are a financing activity on the cash flow statement — not operating or investing.

7 min

Do Dividends Affect Net Income?

No — dividends do not reduce net income because they are not an expense. They are a distribution of profits.

6 min

How Do Dividends Affect Retained Earnings?

Dividends reduce retained earnings when declared. See the journal entries and impact on the balance sheet.

7 min

How to Calculate Dividends Per Share (DPS)

Divide total dividends paid by shares outstanding. Learn the formula, where to find the data, and examples.

7 min

How to Calculate Cost Basis for Reinvested Dividends

Add each reinvested dividend to your cost basis. Track every purchase lot to calculate gains accurately at sale.

8 min

Are Dividends a Debit or Credit? Accounting Basics

Declaring dividends debits retained earnings and credits dividends payable. See the full journal entries.

6 min

How to Find Dividends From Financial Statements

Find dividend data on the cash flow statement, retained earnings, or notes to financial statements. Step-by-step guide.

7 min

Dividend Coverage Ratio: How to Calculate & Interpret

The dividend coverage ratio shows how many times earnings cover the dividend. Above 2x is generally safe.

7 min