Stock Metrics Explained
Understanding stock metrics is essential for making informed dividend investment decisions. This glossary explains each metric we track at Dividend.Direct, how to interpret it, and why it matters for your portfolio.
Dividend Metrics
These metrics help you evaluate a company's dividend income potential and sustainability:
- Dividend Yield - Annual return from dividends
- Payout Ratio - Percentage of earnings paid as dividends
- Dividend Growth Streak - Consecutive years of increases
- Dividend CAGR - Compound annual growth rate
- Chowder Number - Yield + growth combined
Valuation Metrics
These metrics help you determine if a stock is attractively priced:
- P/E Ratio - Price to earnings
- P/B Ratio - Price to book value
- 52-Week Drawdown - Price decline from high
- Yield Percentile - Historical yield context
Financial Health Metrics
These metrics measure a company's financial stability:
- Debt-to-Equity - Leverage measure
- Current Ratio - Liquidity measure
- FCF Per Share - Free cash flow
- FCF Payout Coverage - Cash dividend coverage
Dividend.Direct Scoring
Our proprietary scoring system combines multiple metrics into actionable insights:
- Quality Score - Dividend sustainability (0-90)
- Value Score - Valuation attractiveness (0-80)
- Opportunity Rank - Overall score (0-100)
- Tier System - T1/T2/T3/T4 classification
Classifications
Special designations for exceptional dividend histories:
- Dividend Aristocrats - 25+ years of growth
- Dividend Kings - 50+ years of growth