About Dividend Grader
Welcome to my Dividend Grader stock-rating tool! This is Louis Navellier and it's a pleasure to have you. When it comes to stock analysis, evaluating dividend stocks can be tricky. That's why I created this special tool. If you're familiar with my Portfolio Grader tool, you'll find that Dividend Grader is built and can be used in the same way.
You can enter your tickers and get my buy, hold or sell recommendation in an instant with both tools. You'll notice that the same ticker entered in Portfolio Grader and Dividend Grader may result in conflicting grades and buy recommendations. This is because Portfolio Grader is based on two major factors—fundamentals and buying pressure. By fundamentals, I mean sales growth, earnings growth and the like. Growing companies are companies that are healthy and thriving. They have smart leaders who know how to run and manage a smart business. If a company is struggling to sell its products or is spending more than it makes, it's not a company that you want to own for growth.
The second characteristic I look for in any great stock is strong buying pressure. Think of this as "following the money." The more money that floods into a stock, the more momentum a stock has to rise. And there's no doubt about it, we all like stocks that rise!
Both of these factors play a role in Dividend Grader as well, but to varying degrees. For example, it is more important for dividend stocks to have a consistent history of paying dividends and have strong cash flow to support those dividends.
Today, we'll talk about the grades that go into Dividend Grader. To see the formula and grade definitions for Portfolio Grader, click here.
The Dividend Grader Formula
When it comes to finding superior dividend stocks, there are four critical characteristics at the center of my stock analysis.
The first is a strong Dividend Trend. What I look for in dividend stocks is their ability to increase their dividend payments. So, my Divided Trend grade looks at the last four quarters of payments to see if the payments are growing, unchanged or decreasing. It is generally a bad sign if a company has to cut its dividend payments.
The second is Dividend Reliability. This is looking at how consistently the company has paid a divided. Have they been paying for years without missing or have they had some gaps during times of trouble? Consistent payments is a great sign for the company and plays a big role in making buy, sell or hold decisions for a stock. The third grade is Forward Dividend Growth. There's a lot that goes into this particular rating. It involves looking at growth estimates for the company and the divided. You certainly don't want to own a company that isn't on track to increase your dividend payments over time.
The fourth grade is Earnings Yield. This is one measure used to help gauge earnings quality. A higher positive number can possibly indicate future dividend increases or at least companies with the ability to pay dividends. A falling or negative earnings yield can indicate a possibility of lower future dividends or possibly a stopping of dividend payments.
All of this comes together to deliver you the Total Grade. This is where I blend the results of the four dividend grades and make the final buy, hold or sell recommendation. I also provide the Fundamental Grade and Quantitative Grade from Portfolio Grader for your reference.
Easy as A-B-C
While a vigorous amount of number-crunching goes on behind the scenes, Dividend Grader is designed to give you my analysis in easy-to-interpret A to F letter grades.
In Dividend Grader all of the individual grades are taken into account and create the final rating which gives you my current buy, sell or hold recommendation. A=Strong Buy, B=Buy, C=Hold, D=Sell and F=Strong Sell.
For more in-depth analysis on any stock, be sure to click on the Stock Report icon. When you do you'll access Dividend Grader's exclusive Stock Reports filled with timely stock news and commentary, live stock quotes, plus a detailed view of my analysis. You'll also get a birds-eye view of past ratings for any stock, whether over the last few weeks or over the last 12 months.
Altogether Dividend Grader contains some 1,000 stock reports that are updated daily.
How to Get Started
Now it's time to put the power of Dividend Grader to work for you. If you're a new user, I recommend visiting the 3-step How to Get Started section first.
Happy stock hunting!
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