Can a high-yield stock have a safe dividend?

Yes, but high yield often signals elevated risk. A stock yielding 8% may be safe with a 50% payout and strong FCF — or a trap if the price dropped 40% and the cut hasn't happened yet. Always check the grade.

Analysis Engine · Dividend Safety

Is Your Dividend Safe?

Q: How do you grade dividend safety?

Four factors: payout ratio (30%), free cash flow coverage (30%), earnings consistency (20%), and dividend growth streak (20%). The weighted score maps to an A-F letter grade.

We grade every dividend-paying stock from A (rock-solid) to F (cut imminent) based on payout ratio, free cash flow coverage, earnings consistency, and growth streak. Stop guessing whether the income stream will survive.

135Grade A

66Grade B

34Grade C

2Grade D/F

Our Methodology

How We Grade Dividend Safety (A through F)

Every year, dozens of companies cut their dividends. Most cuts were predictable 6-12 months in advance from these four metrics.

30% WEIGHT

Payout Ratio

Dividends as a percentage of earnings. Below 60% = healthy. Above 80% = yellow flag. Above 100% = paying more than it earns, unsustainable without borrowing.

30% WEIGHT

FCF Coverage

Can the company pay the dividend from cash flow alone? This is more reliable than earnings payout ratio because cash flow is harder to manipulate through accounting choices.

20% WEIGHT

Earnings Consistency

How stable are the earnings that fund the dividend? Volatile earnings = more likely to face a quarter where the dividend is not covered.

20% WEIGHT

Growth Streak

Consecutive years of dividend increases. 10+ years = Dividend Achiever. 25+ years = Dividend Aristocrat. Long streaks create cultural commitment that makes cuts painful for management.

The grades: A Rock-solid — safe through recessions. B Safe — well-covered, minor risks manageable. C Caution — stress on one or more factors. D At risk — cut possible within 12 months. F Imminent risk — unsustainable at current levels. Full methodology on the methodology page.

Avoid the Trap

Why Dividend Safety Matters More Than Yield

High yield is seductive but often misleading. Here is how yield traps work — and how to avoid them.

Stock Drops 40%

The yield automatically doubles. A 3% yield becomes 6%. Income investors see "high yield" and buy — but the price dropped for a reason.

Payout Ratio Spikes

Earnings are declining but the dividend has not been cut yet. The payout ratio climbs above 100%. Cash reserves are funding the dividend — a temporary measure.

The Cut Arrives

Management finally cuts the dividend. The stock drops another 20-30% on the announcement. Income investors who chased yield lose both the income stream and capital.

Our grading system catches these situations at Stage 2 — when the payout ratio and FCF coverage start deteriorating but before the cut announcement. Always check the grade first, yield second.

The Ideal

The Income Investor's Checklist

The best dividend investment combines multiple signals. When all four align, you have a compounding machine.

A or B Safety Grade

The dividend is well-covered by earnings and cash flow. Sustainable through economic downturns. Visit the screener.

Positive Margin of Safety

You are buying at or below fair value. A safe dividend at a premium still underperforms if you overpay for the stock.

Safe Z-Score

The company is not in financial distress. Distressed companies cut dividends first — even those with long growth streaks.

Wide Moat

The competitive advantage protects the earnings that fund the dividend. Wide moat + safe dividend = reliable compounder for decades.

Find Strike Zone dividend stocks →

Real Examples

Safety Grades in Action

Coca-Cola — The A-Grade Dividend

60+ consecutive years of dividend increases. Low payout ratio, strong FCF coverage, and a 4-star moat that protects the earnings stream. This is what dividend safety looks like.

Grade
B

Moat
★★★½☆

Z-Score
5.0

Altria — High Yield, Mixed Signals

One of the highest yields in our coverage, but the safety grade tells a more nuanced story. A wide moat from brand loyalty, but secular decline in tobacco consumption creates long-term uncertainty.

Grade
B

Moat
★★★½☆

Margin
-16.2%

Dividend Tools

Explore Dividend Research

📊

All Dividend Ratings

Every dividend stock graded A through F with full component breakdowns.

🛡️

Safest Dividends (A & B)

Only the most reliable payers — filtered to A and B grades.

📖

Payout Ratio Guide

What payout ratio is safe? Sector benchmarks and red flags.

📈

Dividend Growth Investing

The strategy of buying companies that increase dividends every year.

Safe dividends

A & B Grade Dividends

View all →

$138.37

Agilent Technologies, Inc.

Z-Score 5.23

Fair Value $114.46

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -20.9%

AAPL

$311.23

Apple Inc.

Z-Score 11.87

Fair Value $283.76

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -9.7%

ABBV

$224.94

AbbVie Inc.

Z-Score 2.14

Fair Value $229.20

Moat ★★★☆☆

Div Safety B

Watch Zone MoS: 1.9%

ABT

$90.78

Abbott Laboratories

Z-Score 4.58

Fair Value $84.89

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -6.9%

ACN

$178.86

Accenture plc

Z-Score 4.19

Fair Value $161.12

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -11.0%

ADM

$83.37

Archer-Daniels-Midland Company

Z-Score 3.32

Fair Value $95.75

Moat ★★★☆☆

Div Safety B

Buy Zone MoS: 12.9%

ADP

$231.31

Automatic Data Processing, Inc.

Z-Score 2.62

Fair Value $204.06

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -13.4%

AEP

$127.79

American Electric Power Company, Inc.

Z-Score 0.00

Fair Value $144.52

Moat ☆☆☆☆☆

Div Safety B

Buy Zone MoS: 11.6%

AFL

$115.29

Aflac Incorporated

Z-Score 0.00

Fair Value $112.43

Moat ☆☆☆☆☆

Div Safety A

Fairly Valued MoS: -2.5%

AIG

$73.44

American International Group, Inc.

Z-Score 0.00

Fair Value $88.05

Moat ☆☆☆☆☆

Div Safety A

Strong Buy Zone MoS: 16.6%

ALL

$210.84

The Allstate Corporation

Z-Score 0.00

Fair Value $241.86

Moat ☆☆☆☆☆

Div Safety A

Buy Zone MoS: 12.8%

AMAT

$501.70

Applied Materials, Inc.

Z-Score 19.25

Fair Value $444.00

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -13.0%

AMGN

$345.60

Amgen Inc.

Z-Score 1.86

Fair Value $335.99

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -2.9%

AON

$322.24

Aon plc

Z-Score 0.00

Fair Value $385.26

Moat ☆☆☆☆☆

Div Safety A

Strong Buy Zone MoS: 16.4%

APD

$282.85

Air Products and Chemicals, Inc.

Z-Score 2.51

Fair Value $211.00

Moat ★★★½☆

Div Safety B

Overvalued MoS: -34.1%

ARE

$53.12

Alexandria Real Estate Equities, Inc.

Z-Score 0.00

Fair Value $51.14

Moat ☆☆☆☆☆

Div Safety B

Fairly Valued MoS: -3.9%

ASML

$1,757.47

ASML Holding N.V.

Z-Score 15.17

Fair Value $1,224.80

Moat ★★★½☆

Div Safety A

Overvalued MoS: -43.5%

AVB

$189.19

AvalonBay Communities, Inc.

Z-Score 0.00

Fair Value $194.83

Moat ☆☆☆☆☆

Div Safety B

Watch Zone MoS: 2.9%

AVGO

$418.91

Broadcom Inc.

Z-Score 14.30

Fair Value $282.00

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -48.5%

AWK

$122.25

American Water Works Company, Inc.

Z-Score 0.00

Fair Value $135.73

Moat ☆☆☆☆☆

Div Safety B

Watch Zone MoS: 9.9%

AXP

$312.53

American Express Company

Z-Score 0.00

Fair Value $361.57

Moat ☆☆☆☆☆

Div Safety A

Buy Zone MoS: 13.6%

BAC

$54.17

Bank of America Corporation

Z-Score 0.00

Fair Value $63.16

Moat ☆☆☆☆☆

Div Safety B

Buy Zone MoS: 14.2%

BDX

$149.56

Becton, Dickinson and Company

Z-Score 1.81

Fair Value $99.46

Moat ★★½☆☆

Div Safety A

Overvalued MoS: -50.4%

BEN

$31.97

Franklin Resources, Inc.

Z-Score 0.00

Fair Value $30.86

Moat ☆☆☆☆☆

Div Safety B

Fairly Valued MoS: -3.6%

$137.16

Bank of New York Mellon Corp

Z-Score 0.00

Fair Value $142.64

Moat ☆☆☆☆☆

Div Safety A

Watch Zone MoS: 3.8%

BKR

$66.11

Baker Hughes Company

Z-Score 2.76

Fair Value $50.22

Moat ★★★½☆

Div Safety A

Overvalued MoS: -31.6%

BLK

$1,022.56

BlackRock, Inc.

Z-Score 0.00

Fair Value $1,251.25

Moat ☆☆☆☆☆

Div Safety A

Strong Buy Zone MoS: 18.3%

BMY

$56.60

Bristol-Myers Squibb Company

Z-Score 2.26

Fair Value $64.26

Moat ★★★☆☆

Div Safety A

Buy Zone MoS: 11.9%

BTI

$57.85

British American Tobacco p.l.c.

Z-Score 2.15

Fair Value $50.08

Moat ★★½☆☆

Div Safety A

Overvalued MoS: -15.5%

$135.15

Citigroup Inc.

Z-Score 0.00

Fair Value $146.93

Moat ☆☆☆☆☆

Div Safety A

Watch Zone MoS: 8.0%

CAG

$12.68

Conagra Brands, Inc.

Z-Score 1.49

Fair Value $0.00

Moat ★★★☆☆

Div Safety B

Insufficient Data MoS: 0.0%

CARR

$68.54

Carrier Global Corporation

Z-Score 2.77

Fair Value $73.33

Moat ★★★☆☆

Div Safety B

Watch Zone MoS: 6.5%

CAT

$940.48

Caterpillar Inc.

Z-Score 5.58

Fair Value $846.94

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -11.0%

$314.50

Chubb Limited

Z-Score 0.00

Fair Value $345.78

Moat ☆☆☆☆☆

Div Safety A

Watch Zone MoS: 9.0%

CCL

$27.85

Carnival Corporation Ltd.

Z-Score 1.29

Fair Value $18.30

Moat ★★½☆☆

Div Safety B

Overvalued MoS: -52.2%

CDW

$139.45

CDW Corporation

Z-Score 2.52

Fair Value $124.85

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -11.7%

CHRW

$184.59

C.H. Robinson Worldwide, Inc.

Z-Score 9.70

Fair Value $166.11

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -11.1%

$280.68

The Cigna Group

Z-Score 2.68

Fair Value $66.40

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -322.7%

CINF

$160.66

Cincinnati Financial Corporation

Z-Score 0.00

Fair Value $181.50

Moat ☆☆☆☆☆

Div Safety A

Buy Zone MoS: 11.5%

$85.10

Colgate-Palmolive Company

Z-Score 6.68

Fair Value $87.64

Moat ★★★½☆

Div Safety B

Watch Zone MoS: 2.9%

CMCSA

$23.33

Comcast Corporation

Z-Score 1.43

Fair Value $15.91

Moat ★★★½☆

Div Safety A

Overvalued MoS: -46.6%

CME

$256.06

CME Group Inc.

Z-Score 0.00

Fair Value $306.47

Moat ☆☆☆☆☆

Div Safety B

Strong Buy Zone MoS: 16.4%

COP

$119.23

ConocoPhillips

Z-Score 3.20

Fair Value $130.89

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 8.9%

COST

$972.35

Costco Wholesale Corporation

Z-Score 9.87

Fair Value $752.00

Moat ★★★☆☆

Div Safety B

Overvalued MoS: -29.3%

CPB

$21.55

The Campbell's Company

Z-Score 1.68

Fair Value $21.70

Moat ★★★☆☆

Div Safety B

Watch Zone MoS: 0.7%

CSCO

$130.00

Cisco Systems, Inc.

Z-Score 4.88

Fair Value $117.39

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -10.7%

CSX

$46.23

CSX Corporation

Z-Score 2.68

Fair Value $40.73

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -13.5%

CTRA

$32.56

Coterra Energy Inc.

Z-Score 2.64

Fair Value $32.64

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 0.3%

CVX

$188.35

Chevron Corporation

Z-Score 3.40

Fair Value $235.19

Moat ★★★☆☆

Div Safety B

Strong Buy Zone MoS: 19.9%

DAL

$79.51

Delta Air Lines, Inc.

Z-Score 1.56

Fair Value $67.52

Moat ★★★½☆

Div Safety B

Overvalued MoS: -17.8%

$591.75

Deere & Company

Z-Score 3.18

Fair Value $516.99

Moat ★★★½☆

Div Safety B

Fairly Valued MoS: -14.5%

DELL

$422.05

Dell Technologies Inc.

Z-Score 2.97

Fair Value $504.40

Moat ★★★☆☆

Div Safety B

Strong Buy Zone MoS: 16.3%

DHI

$146.41

D.R. Horton, Inc.

Z-Score 6.01

Fair Value $115.36

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -26.9%

DHR

$186.64

Danaher Corporation

Z-Score 3.91

Fair Value $192.50

Moat ★★½☆☆

Div Safety A

Watch Zone MoS: 3.0%

DIS

$99.34

The Walt Disney Company

Z-Score 2.33

Fair Value $81.41

Moat ★★½☆☆

Div Safety B

Overvalued MoS: -22.0%

DPZ

$307.51

Domino's Pizza, Inc.

Z-Score 2.89

Fair Value $267.00

Moat ★★★½☆

Div Safety A

Overvalued MoS: -15.2%

DVN

$45.99

Devon Energy Corporation

Z-Score 2.97

Fair Value $40.44

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -13.7%

ECL

$254.33

Ecolab Inc.

Z-Score 4.66

Fair Value $214.18

Moat ★★★½☆

Div Safety A

Overvalued MoS: -18.8%

$104.08

Consolidated Edison, Inc.

Z-Score 0.00

Fair Value $110.00

Moat ☆☆☆☆☆

Div Safety B

Watch Zone MoS: 5.4%

$82.90

The Estée Lauder Companies Inc.

Z-Score 2.65

Fair Value $0.00

Moat ★★★☆☆

Div Safety B

Insufficient Data MoS: 0.0%

ELV

$409.44

Elevance Health, Inc.

Z-Score 2.96

Fair Value $405.82

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -0.9%

EMR

$142.06

Emerson Electric Co.

Z-Score 4.21

Fair Value $130.57

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -8.8%

EOG

$140.88

EOG Resources, Inc.

Z-Score 3.78

Fair Value $153.05

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 8.0%

$19.62

Energy Transfer LP

Z-Score 1.30

Fair Value $18.63

Moat ★★★☆☆

Div Safety B

Fairly Valued MoS: -5.3%

EXC

$44.63

Exelon Corporation

Z-Score 0.00

Fair Value $49.33

Moat ☆☆☆☆☆

Div Safety B

Watch Zone MoS: 9.5%

EXPD

$160.13

Expeditors International of Washington, Inc.

Z-Score 9.07

Fair Value $141.24

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -13.4%

EXR

$145.87

Extra Space Storage Inc.

Z-Score 0.00

Fair Value $153.60

Moat ☆☆☆☆☆

Div Safety B

Watch Zone MoS: 5.0%

FAST

$47.16

Fastenal Company

Z-Score 33.72

Fair Value $41.18

Moat ★★★☆☆

Div Safety B

Fairly Valued MoS: -14.5%

FCX

$69.69

Freeport-McMoRan Inc.

Z-Score 3.22

Fair Value $65.42

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -6.5%

FDX

$328.00

FedEx Corporation

Z-Score 2.73

Fair Value $244.51

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -34.2%

FIS

$41.48

Fidelity National Information Services, Inc.

Z-Score 0.07

Fair Value $20.06

Moat ★★½☆☆

Div Safety B

Overvalued MoS: -106.8%

$341.50

General Dynamics Corporation

Z-Score 4.22

Fair Value $293.72

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -16.3%

$327.65

GE Aerospace

Z-Score 3.43

Fair Value $267.80

Moat ★★★½☆

Div Safety A

Overvalued MoS: -22.4%

GEN

$26.52

Gen Digital Inc.

Z-Score 1.40

Fair Value $22.75

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -16.6%

GILD

$129.18

Gilead Sciences, Inc.

Z-Score 4.21

Fair Value $99.68

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -29.6%

GIS

$32.20

General Mills, Inc.

Z-Score 2.19

Fair Value $30.28

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -6.3%

$154.31

Globe Life Inc.

Z-Score 0.00

Fair Value $175.91

Moat ☆☆☆☆☆

Div Safety A

Buy Zone MoS: 12.3%

$83.22

General Motors Company

Z-Score 1.23

Fair Value $189.62

Moat ★★☆☆☆

Div Safety B

Strong Buy Zone MoS: 56.1%

GPN

$67.81

Global Payments Inc.

Z-Score 0.91

Fair Value $189.24

Moat ★★½☆☆

Div Safety A

Strong Buy Zone MoS: 64.2%

$1,092.61

The Goldman Sachs Group, Inc.

Z-Score 0.00

Fair Value $947.60

Moat ☆☆☆☆☆

Div Safety A

Overvalued MoS: -15.3%

HAL

$41.22

Halliburton Company

Z-Score 3.71

Fair Value $37.64

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -9.5%

HCA

$361.83

HCA Healthcare, Inc.

Z-Score 2.52

Fair Value $306.98

Moat ★★★½☆

Div Safety A

Overvalued MoS: -17.9%

$309.95

The Home Depot, Inc.

Z-Score 5.52

Fair Value $265.35

Moat ★★★☆☆

Div Safety B

Overvalued MoS: -16.8%

HIG

$127.33

The Hartford Insurance Group, Inc.

Z-Score 0.00

Fair Value $149.10

Moat ☆☆☆☆☆

Div Safety A

Buy Zone MoS: 14.6%

HLT

$338.15

Hilton Worldwide Holdings Inc.

Z-Score 3.10

Fair Value $284.80

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -18.7%

HON

$217.64

Honeywell International Inc.

Z-Score 3.31

Fair Value $237.98

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 8.6%

HPE

$53.69

Hewlett Packard Enterprise Company

Z-Score 1.31

Fair Value $56.80

Moat ★★☆☆☆

Div Safety A

Watch Zone MoS: 5.5%

HRL

$23.29

Hormel Foods Corporation

Z-Score 3.46

Fair Value $27.49

Moat ★★★☆☆

Div Safety B

Strong Buy Zone MoS: 15.3%

HSY

$182.71

The Hershey Company

Z-Score 3.94

Fair Value $191.03

Moat ★★★☆☆

Div Safety B

Watch Zone MoS: 4.4%

IBM

$301.77

International Business Machines Corporation

Z-Score 3.56

Fair Value $227.68

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -32.5%

ICE

$142.06

Intercontinental Exchange, Inc.

Z-Score 0.00

Fair Value $199.53

Moat ☆☆☆☆☆

Div Safety A

Strong Buy Zone MoS: 28.8%

INTU

$301.98

Intuit Inc.

Z-Score 4.70

Fair Value $307.56

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 1.8%

ITW

$251.12

Illinois Tool Works Inc.

Z-Score 7.91

Fair Value $213.44

Moat ★★★½☆

Div Safety A

Overvalued MoS: -17.6%

IVZ

$28.17

Invesco Ltd.

Z-Score 0.00

Fair Value $29.23

Moat ☆☆☆☆☆

Div Safety A

Watch Zone MoS: 3.6%

JNJ

$228.17

Johnson & Johnson

Z-Score 3.84

Fair Value $236.99

Moat ★★★☆☆

Div Safety B

Watch Zone MoS: 3.7%

JPM

$310.89

JPMorgan Chase & Co.

Z-Score 0.00

Fair Value $342.19

Moat ☆☆☆☆☆

Div Safety A

Watch Zone MoS: 9.2%

KHC

$22.47

The Kraft Heinz Company

Z-Score 0.46

Fair Value $0.00

Moat ★★½☆☆

Div Safety B

Insufficient Data MoS: 0.0%

KLAC

$2,131.10

KLA Corporation

Z-Score 17.14

Fair Value $1,413.20

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -50.8%

KMB

$94.47

Kimberly-Clark Corporation

Z-Score 3.28

Fair Value $108.34

Moat ★★★½☆

Div Safety B

Buy Zone MoS: 12.8%

KMI

$31.70

Kinder Morgan, Inc.

Z-Score 1.28

Fair Value $27.15

Moat ★★½☆☆

Div Safety B

Overvalued MoS: -16.8%

$76.82

The Coca-Cola Company

Z-Score 5.01

Fair Value $66.83

Moat ★★★½☆

Div Safety B

Fairly Valued MoS: -14.9%

LEN

$91.88

Lennar Corporation

Z-Score 3.89

Fair Value $70.67

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -30.0%

LHX

$309.78

L3Harris Technologies, Inc.

Z-Score 2.52

Fair Value $288.00

Moat ★★☆☆☆

Div Safety A

Fairly Valued MoS: -7.6%

LIN

$507.45

Linde plc

Z-Score 3.98

Fair Value $455.88

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -11.3%

LLY

$1,125.27

Eli Lilly and Company

Z-Score 8.98

Fair Value $1,000.96

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -12.4%

LMT

$519.05

Lockheed Martin Corporation

Z-Score 3.36

Fair Value $536.71

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 3.3%

LNG

$241.07

Cheniere Energy, Inc.

Z-Score 2.28

Fair Value $371.64

Moat ★★★½☆

Div Safety A

Strong Buy Zone MoS: 35.1%

LOW

$207.53

Lowe's Companies, Inc.

Z-Score 3.06

Fair Value $178.50

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -16.3%

LPLA

$291.84

LPL Financial Holdings Inc.

Z-Score 0.00

Fair Value $416.50

Moat ☆☆☆☆☆

Div Safety A

Strong Buy Zone MoS: 29.9%

LRCX

$336.41

Lam Research Corporation

Z-Score 26.14

Fair Value $205.60

Moat ★★★½☆

Div Safety A

Overvalued MoS: -63.6%

LVS

$50.73

Las Vegas Sands Corp.

Z-Score 2.36

Fair Value $46.27

Moat ★★★½☆

Div Safety B

Fairly Valued MoS: -9.6%

$481.76

Mastercard Incorporated

Z-Score 9.50

Fair Value $419.02

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -15.0%

MAR

$385.30

Marriott International, Inc.

Z-Score 4.13

Fair Value $349.52

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -10.2%

MCD

$272.72

McDonald's Corporation

Z-Score 4.69

Fair Value $230.16

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -18.5%

MDLZ

$60.99

Mondelez International, Inc.

Z-Score 2.30

Fair Value $56.80

Moat ★★½☆☆

Div Safety B

Fairly Valued MoS: -7.4%

MDT

$81.93

Medtronic plc

Z-Score 2.67

Fair Value $73.30

Moat ★★½☆☆

Div Safety A

Fairly Valued MoS: -11.8%

MET

$83.46

MetLife, Inc.

Z-Score 0.00

Fair Value $92.00

Moat ☆☆☆☆☆

Div Safety A

Watch Zone MoS: 9.3%

MKC

$46.62

McCormick & Company, Incorporated

Z-Score 2.13

Fair Value $19.50

Moat ★★★☆☆

Div Safety B

Overvalued MoS: -139.1%

MKTX

$120.62

MarketAxess Holdings Inc.

Z-Score 0.00

Fair Value $186.09

Moat ☆☆☆☆☆

Div Safety A

Strong Buy Zone MoS: 35.2%

MLM

$580.86

Martin Marietta Materials, Inc.

Z-Score 3.62

Fair Value $587.41

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 1.1%

MMM

$152.77

3M Company

Z-Score 4.20

Fair Value $163.50

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 6.6%

$70.60

Altria Group, Inc.

Z-Score 4.72

Fair Value $60.75

Moat ★★★½☆

Div Safety B

Overvalued MoS: -16.2%

MPC

$267.05

Marathon Petroleum Corporation

Z-Score 3.43

Fair Value $245.25

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -8.9%

MPWR

$1,652.60

Monolithic Power Systems, Inc.

Z-Score 76.14

Fair Value $674.40

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -145.0%

MRK

$120.26

Merck & Co., Inc.

Z-Score 4.01

Fair Value $156.70

Moat ★★★½☆

Div Safety B

Strong Buy Zone MoS: 23.3%

MRVL

$316.43

Marvell Technology, Inc.

Z-Score 21.95

Fair Value $105.60

Moat ★★½☆☆

Div Safety A

Overvalued MoS: -199.7%

$218.27

Morgan Stanley

Z-Score 0.00

Fair Value $203.29

Moat ☆☆☆☆☆

Div Safety B

Fairly Valued MoS: -7.4%

MSFT

$428.05

Microsoft Corporation

Z-Score 8.69

Fair Value $366.30

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -16.9%

$996.00

Micron Technology, Inc.

Z-Score 25.47

Fair Value $1,228.80

Moat ★★½☆☆

Div Safety A

Strong Buy Zone MoS: 18.9%

NDAQ

$88.45

Nasdaq, Inc.

Z-Score 0.00

Fair Value $106.47

Moat ☆☆☆☆☆

Div Safety A

Strong Buy Zone MoS: 16.9%

NEE

$85.68

NextEra Energy, Inc.

Z-Score 0.00

Fair Value $98.55

Moat ☆☆☆☆☆

Div Safety B

Buy Zone MoS: 13.1%

NEM

$108.33

Newmont Corporation

Z-Score 4.31

Fair Value $106.98

Moat ★★½☆☆

Div Safety B

Fairly Valued MoS: -1.3%

NKE

$43.62

NIKE, Inc.

Z-Score 3.65

Fair Value $44.90

Moat ★★★☆☆

Div Safety B

Watch Zone MoS: 2.9%

NSC

$307.19

Norfolk Southern Corporation

Z-Score 2.38

Fair Value $259.82

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -18.2%

NTAP

$178.87

NetApp, Inc.

Z-Score 3.35

Fair Value $152.00

Moat ★★★½☆

Div Safety A

Overvalued MoS: -17.7%

NUE

$262.28

Nucor Corporation

Z-Score 5.47

Fair Value $243.10

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -7.9%

NVDA

$218.66

NVIDIA Corporation

Z-Score 69.03

Fair Value $207.19

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -5.5%

ODFL

$245.52

Old Dominion Freight Line, Inc.

Z-Score 29.34

Fair Value $197.20

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -24.5%

ORCL

$236.34

Oracle Corporation

Z-Score 3.27

Fair Value $208.08

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -13.6%

OTIS

$69.85

Otis Worldwide Corporation

Z-Score 2.86

Fair Value $58.62

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -19.2%

OXY

$58.67

Occidental Petroleum Corporation

Z-Score 1.51

Fair Value $128.40

Moat ★★½☆☆

Div Safety B

Strong Buy Zone MoS: 54.3%

PAYX

$99.48

Paychex, Inc.

Z-Score 2.84

Fair Value $92.75

Moat ★★★☆☆

Div Safety B

Fairly Valued MoS: -7.3%

PFE

$25.69

Pfizer Inc.

Z-Score 1.99

Fair Value $32.90

Moat ★★½☆☆

Div Safety B

Strong Buy Zone MoS: 21.9%

$140.78

The Procter & Gamble Company

Z-Score 5.28

Fair Value $123.03

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -14.4%

$872.23

Parker-Hannifin Corporation

Z-Score 6.43

Fair Value $740.92

Moat ★★★½☆

Div Safety A

Overvalued MoS: -17.7%

PLD

$143.79

Prologis, Inc.

Z-Score 0.00

Fair Value $152.30

Moat ☆☆☆☆☆

Div Safety B

Watch Zone MoS: 5.6%

PNC

$227.08

The PNC Financial Services Group, Inc.

Z-Score 0.00

Fair Value $255.21

Moat ☆☆☆☆☆

Div Safety A

Buy Zone MoS: 11.0%

PPG

$111.96

PPG Industries, Inc.

Z-Score 3.75

Fair Value $97.65

Moat ★★★½☆

Div Safety B

Fairly Valued MoS: -14.6%

PRU

$103.32

Prudential Financial, Inc.

Z-Score 0.00

Fair Value $100.47

Moat ☆☆☆☆☆

Div Safety A

Fairly Valued MoS: -2.8%

PSX

$184.14

Phillips 66

Z-Score 3.80

Fair Value $166.01

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -10.9%

PWR

$719.17

Quanta Services, Inc.

Z-Score 5.87

Fair Value $348.80

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -106.2%

QCOM

$242.57

QUALCOMM Incorporated

Z-Score 8.04

Fair Value $295.70

Moat ★★★☆☆

Div Safety A

Strong Buy Zone MoS: 18.0%

QSR

$71.83

Restaurant Brands International Inc.

Z-Score 1.71

Fair Value $63.50

Moat ★★★☆☆

Div Safety B

Fairly Valued MoS: -13.1%

RCL

$293.28

Royal Caribbean Cruises Ltd.

Z-Score 2.28

Fair Value $238.64

Moat ★★★½☆

Div Safety B

Overvalued MoS: -22.9%

ROK

$462.24

Rockwell Automation, Inc.

Z-Score 5.90

Fair Value $427.60

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -8.1%

ROST

$233.06

Ross Stores, Inc.

Z-Score 7.51

Fair Value $202.31

Moat ★★★½☆

Div Safety A

Overvalued MoS: -15.2%

RSG

$207.91

Republic Services, Inc.

Z-Score 2.98

Fair Value $177.04

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -17.4%

RTX

$179.41

RTX Corporation

Z-Score 2.59

Fair Value $166.17

Moat ★★½☆☆

Div Safety A

Fairly Valued MoS: -8.0%

SCHW

$88.00

The Charles Schwab Corporation

Z-Score 0.00

Fair Value $115.85

Moat ☆☆☆☆☆

Div Safety B

Strong Buy Zone MoS: 24.0%

SHW

$300.09

The Sherwin-Williams Company

Z-Score 3.49

Fair Value $251.86

Moat ★★★½☆

Div Safety A

Overvalued MoS: -19.1%

SJM

$101.12

The J. M. Smucker Company

Z-Score 0.94

Fair Value $0.00

Moat ★★½☆☆

Div Safety B

Insufficient Data MoS: 0.0%

SLB

$58.01

SLB N.V.

Z-Score 3.40

Fair Value $50.78

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -14.2%

SPG

$206.22

Simon Property Group, Inc.

Z-Score 0.00

Fair Value $214.40

Moat ☆☆☆☆☆

Div Safety A

Watch Zone MoS: 3.8%

SPGI

$420.12

S&P Global Inc.

Z-Score 4.10

Fair Value $388.04

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -8.3%

STLD

$276.85

Steel Dynamics, Inc.

Z-Score 6.28

Fair Value $274.18

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -1.0%

STZ

$137.78

Constellation Brands, Inc.

Z-Score 2.76

Fair Value $128.10

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -7.6%

SYK

$301.21

Stryker Corporation

Z-Score 4.38

Fair Value $302.22

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 0.3%

SYY

$74.35

Sysco Corporation

Z-Score 5.05

Fair Value $62.13

Moat ★★★☆☆

Div Safety B

Overvalued MoS: -19.7%

$22.77

AT&T Inc.

Z-Score 0.93

Fair Value $17.60

Moat ★★★☆☆

Div Safety B

Overvalued MoS: -29.4%

TFC

$49.18

Truist Financial Corporation

Z-Score 0.00

Fair Value $55.67

Moat ☆☆☆☆☆

Div Safety A

Buy Zone MoS: 11.7%

TGT

$123.85

Target Corporation

Z-Score 3.02

Fair Value $109.39

Moat ★★★½☆

Div Safety B

Fairly Valued MoS: -13.2%

TJX

$158.63

The TJX Companies, Inc.

Z-Score 6.91

Fair Value $129.43

Moat ★★★½☆

Div Safety A

Overvalued MoS: -22.6%

TMO

$482.03

Thermo Fisher Scientific Inc.

Z-Score 3.45

Fair Value $447.08

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -7.8%

TRGP

$267.37

Targa Resources Corp.

Z-Score 2.75

Fair Value $220.86

Moat ★★★½☆

Div Safety A

Overvalued MoS: -21.1%

TROW

$106.96

T. Rowe Price Group, Inc.

Z-Score 0.00

Fair Value $97.42

Moat ☆☆☆☆☆

Div Safety A

Fairly Valued MoS: -9.8%

TRV

$293.43

The Travelers Companies, Inc.

Z-Score 0.00

Fair Value $314.48

Moat ☆☆☆☆☆

Div Safety A

Watch Zone MoS: 6.7%

TSM

$444.92

Taiwan Semiconductor Manufacturing Company Limited

Z-Score 3.05

Fair Value $428.30

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -3.9%

TXN

$305.37

Texas Instruments Incorporated

Z-Score 12.70

Fair Value $257.60

Moat ★★★☆☆

Div Safety B

Overvalued MoS: -18.5%

UNH

$396.47

UnitedHealth Group Incorporated

Z-Score 3.02

Fair Value $466.60

Moat ★★★☆☆

Div Safety A

Strong Buy Zone MoS: 15.0%

UNP

$263.90

Union Pacific Corporation

Z-Score 4.07

Fair Value $221.35

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -19.2%

UPS

$110.22

United Parcel Service, Inc.

Z-Score 3.01

Fair Value $92.87

Moat ★★★☆☆

Div Safety B

Overvalued MoS: -18.7%

USB

$55.46

U.S. Bancorp

Z-Score 0.00

Fair Value $63.55

Moat ☆☆☆☆☆

Div Safety A

Buy Zone MoS: 12.7%

$320.18

Visa Inc.

Z-Score 7.39

Fair Value $280.84

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -14.0%

VICI

$27.21

VICI Properties Inc.

Z-Score 0.00

Fair Value $34.17

Moat ☆☆☆☆☆

Div Safety B

Strong Buy Zone MoS: 20.4%

VLO

$258.85

Valero Energy Corporation

Z-Score 5.13

Fair Value $264.20

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 2.0%

VMC

$283.06

Vulcan Materials Company

Z-Score 4.09

Fair Value $219.17

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -29.1%

VRSK

$180.00

Verisk Analytics, Inc.

Z-Score 5.47

Fair Value $162.40

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -10.8%

VTRS

$15.90

Viatris Inc.

Z-Score 0.67

Fair Value $0.00

Moat ★★☆☆☆

Div Safety B

Insufficient Data MoS: 0.0%

$44.87

Verizon Communications Inc.

Z-Score 1.27

Fair Value $42.04

Moat ★★★☆☆

Div Safety B

Fairly Valued MoS: -6.7%

WAB

$262.52

Westinghouse Air Brake Technologies Corporation

Z-Score 3.51

Fair Value $264.81

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 0.9%

WCN

$153.95

Waste Connections, Inc.

Z-Score 2.84

Fair Value $140.04

Moat ★★★☆☆

Div Safety A

Fairly Valued MoS: -9.9%

WDC

$575.50

Western Digital Corporation

Z-Score 15.21

Fair Value $520.37

Moat ★★½☆☆

Div Safety B

Fairly Valued MoS: -10.6%

WFC

$81.62

Wells Fargo & Company

Z-Score 0.00

Fair Value $96.11

Moat ☆☆☆☆☆

Div Safety A

Strong Buy Zone MoS: 15.1%

$219.01

Waste Management, Inc.

Z-Score 2.84

Fair Value $195.56

Moat ★★★½☆

Div Safety A

Fairly Valued MoS: -12.0%

WMB

$72.43

The Williams Companies, Inc.

Z-Score 1.36

Fair Value $64.26

Moat ★★★☆☆

Div Safety B

Fairly Valued MoS: -12.7%

WMT

$117.74

Walmart Inc.

Z-Score 6.45

Fair Value $97.50

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -20.8%

WYNN

$103.60

Wynn Resorts, Limited

Z-Score 1.23

Fair Value $97.52

Moat ★★★☆☆

Div Safety B

Fairly Valued MoS: -6.2%

XOM

$152.04

Exxon Mobil Corporation

Z-Score 4.64

Fair Value $161.54

Moat ★★★☆☆

Div Safety A

Watch Zone MoS: 5.9%

YUM

$148.08

Yum! Brands, Inc.

Z-Score 2.50

Fair Value $123.42

Moat ★★★☆☆

Div Safety A

Overvalued MoS: -20.0%

ZBH

$86.69

Zimmer Biomet Holdings, Inc.

Z-Score 2.32

Fair Value $102.38

Moat ★★½☆☆

Div Safety A

Strong Buy Zone MoS: 15.3%

ZTS

$79.52

Zoetis Inc.

Z-Score 4.62

Fair Value $68.82

Moat ★★★½☆

Div Safety A

Overvalued MoS: -15.6%

FAQ

Common Questions

How do you grade dividend safety?

Four factors: payout ratio (30%), FCF coverage (30%), earnings consistency (20%), and growth streak (20%). The weighted score maps to an A-F letter grade.

What payout ratio is safe?

Below 60% is healthy for most sectors. Above 80% is a yellow flag. Above 100% means paying more than it earns. REITs and utilities sustain higher ratios by design.

Can even A-grade dividends get cut?

In extreme circumstances, yes — pandemics, industry disruption, or regulatory shocks can force even the safest companies to cut. But A-grade stocks are specifically selected for their ability to sustain dividends through normal economic cycles.

What should I do if my stock has a D or F grade?

A D or F grade means the dividend is at elevated risk. Check the trend (deteriorating or stabilizing), the Z-Score (financial health), and whether you own the stock for income or appreciation. If income is the goal, the risk may not be worth it.

More analysis