Part 6/9:
Dividend Yield: While a higher yield is attractive, extremely high yields could indicate a riskier financial situation. The focus should be on sustainable yield.
Dividend Growth: Evaluate the history of dividend payments over the years to ensure a company has consistently increased dividends.
Payout Ratio: This metric indicates the portion of profits paid out as dividends versus retained for growth. A ratio above 80% could indicate that the company may be making sacrifices elsewhere.
Financial Health: Consider free cash flow, P/E ratio, total debt, and equity for a complete understanding of a stock’s viability long-term.