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Glossary
A rating of how reliably a company can sustain its dividend through downturns.
Dividend safety measures how likely a company is to maintain its dividend without cutting it. It factors in payout ratio, free cash flow coverage, debt levels, and earnings stability.
An ex-dividend date looks attractive for income trades — but only if the dividend is safe. A company with a high yield but a dangerous payout ratio is a dividend trap: the yield is high because the market already suspects a cut. A cut collapses the stock price and eliminates the income you were counting on.
The Long Term tool includes dividend safety in its Quality Score calculation. The Dividend Calendar shows ex-dates and pay-dates across the market so you can time income trades — but always cross-check the dividend safety rating before entering a covered call or CSP strategy on a high-yield name.