Dividend Analysis
Dividend stock analysis for income, dividend-growth, and shareholder-return strategies...
Install
npx skills add HKUDS/Vibe-Trading --skill dividend-analysis -g -a claude-code -y- Repository
- HKUDS/Vibe-Trading37.4k
- Category
- Marketing
- Updated
- 3d ago
- License
- MIT
- Context cost
- Mediumabout 1,963 tokens
- Runs scripts
- No, instructions only
What it does
Dividend stock analysis for income, dividend-growth, and shareholder-return strategies, including yield quality, payout sustainability, ex-dividend mechanics, and yield-trap checks.
Dividend Analysis
Purpose
Use this skill when the user asks about dividend stocks, income portfolios, dividend growth, high-yield screening, payout safety, ex-dividend dates, or whether a dividend is sustainable. The goal is to separate durable shareholder returns from yield traps.
Dividend analysis should never stop at headline yield. A good answer explains how the dividend is funded, how stable the underlying business is, whether management has room to keep paying, and how valuation changes the expected total return.
Core Questions
- What is the current cash yield, and is it normal for this company or sector?
- Is the payout covered by earnings, operating cash flow, and free cash flow?
- Is the balance sheet strong enough to absorb a down cycle?
- Has management grown, held, cut, or suspended the dividend across cycles?
- Does the valuation still leave room for total return after taxes and reinvestment assumptions?
Key Metrics
| Metric | Formula | Healthy Signal | Warning Signal |
|---|---|---|---|
| Dividend yield | annual DPS / current price | Above peer median with stable coverage | Extremely high vs history or peers |
| Earnings payout ratio | dividends / net income, or DPS / EPS | 30-70% for mature non-financials | Above 90%, negative earnings |
| Free-cash-flow payout | dividends / FCF | Below 70% through a cycle | Dividend exceeds FCF for 2+ years |
| CFO coverage | operating cash flow / dividends paid | Above 1.5x | Below 1.0x |
| Dividend CAGR | DPS growth over 3/5/10 years | Positive and below EPS/FCF growth | Growth funded by leverage |
| Net debt / EBITDA | net debt / EBITDA | Sector-appropriate leverage | Leverage rising while payout rises |
| Buyback plus dividend yield | (dividends + net buybacks) / market cap | Balanced capital return | Buybacks funded by debt at high valuation |
