Methodology
How we calculate, rank, and filter the data you see on this site.
Yield calculation
We annualize yield using only the most recent regular dividend payment multiplied by the payment frequency (quarterly × 4, monthly × 12, semi-annual × 2, annual × 1). Special, one-time, or irregular distributions are explicitly excluded from the annualized yield figure. This is deliberate: a one-time special dividend that is multiplied into an annualized rate produces a misleading number that overstates recurring income.
Yield is then calculated as the annualized dividend divided by the most recent closing price. Because price is in the denominator, yield changes whenever the price changes, even if the dividend is unchanged.
DividendRank
DividendRank is our proprietary composite score, expressed on a 0–100 scale. It is designed to surface dividend payers that score well across multiple dimensions at once, rather than optimizing for any single factor. The score blends:
- Yield — scored on a quality curve that peaks in the 3–6% range. Very high yields (above ~10%) are penalized because they frequently signal elevated risk or a forthcoming cut, not genuine income opportunity.
- Payout sustainability — lower payout ratios relative to earnings and free cash flow score better. A payout ratio above 100% (the company is paying out more than it earns) is a significant negative signal.
- Profitability — companies with stronger earnings histories contribute more reliably to the score.
- Valuation — price-to-book and related metrics are incorporated as a tiebreaker.
- Dividend reliability — companies with longer, uninterrupted payment histories score higher. A recent cut or suspension weighs against the rank.
DividendRank excludes preferred stocks, OTC/pink-sheet listings, and securities whose names indicate they are debt instruments or series notes. It is a research filter, not a buy signal.
Payout ratio
We display payout ratio as the annualized dividend divided by trailing earnings per share where available. When the ratio exceeds 100%, it means dividends exceed reported earnings for that period. This does not always mean a cut is imminent — real estate investment trusts, for example, are required to distribute most of their taxable income and commonly run ratios above 100% against earnings while remaining fully covered on a cash-flow basis. Context matters; the ratio is a starting point for further investigation, not a verdict.
Dividend Aristocrats and Kings
We define Dividend Aristocrats as companies with at least 25 consecutive years of dividend increases, and Dividend Kings as companies with at least 50 consecutive years. Consecutive-increase streaks are tracked in our own data layer and cross-referenced against payment histories. A company that freezes its dividend (no increase) or cuts it exits the list. These definitions align with widely accepted conventions, though membership can differ slightly from commercial index products that apply additional market-cap or index-membership criteria.
Special dividend identification
We flag payments that are labeled "special," "extra," or "one-time" in source data as non-recurring. These are shown in dividend history tables but excluded from yield and annualized income calculations. If a company later converts a formerly special payment into a recurring one, it will eventually be reclassified as data is updated.
Data refresh cadence
- Daily: prices, ex-dividend dates, recent declarations, RSI, moving averages
- Weekly: fundamental metrics (payout ratio, P/B), DividendRank recomputation
- Monthly: full history refresh, Aristocrats/Kings streak recalculation, article regeneration
Coverage universe
We cover U.S.-listed common stocks and ADRs that have paid at least one dividend in the past 24 months. OTC/pink-sheet listings, preferred shares, and debt instruments are excluded from screener results and ranked lists. ETFs are covered separately in the ETF section and are not included in DividendRank.