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TickerNameSectorPrice ($)Yield (%)Payout (%)Status
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About

Yield traps destroy portfolios. A high dividend yield often signals a crashing stock price rather than a generous payout. Investors chasing the highest numbers without analyzing the Payout Ratio or Cash Flow often face dividend cuts and capital depreciation. This tool filters a representative dataset of dividend-paying equities to isolate sustainable income streams.

We prioritize the Payout Ratio as a primary health indicator. A ratio exceeding 100% implies the company returns more cash to shareholders than it generates in earnings, a mathematically unsustainable trajectory. The logic below calculates Yield and Payout Ratio to flag potential risks before capital allocation.

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Formulas

The dividend yield is the ratio of annual dividends to the current share price.

Yield DannualPshare × 100

The Payout Ratio indicates sustainability. A lower ratio suggests the dividend is safe and has room for growth.

Ratiopayout = DPSEPS × 100

Reference Data

SectorAvg YieldSafe Payout RatioRisk LevelAristocrat Count (Est)
Utilities3.5-4.5% 75%LowHigh
Real Estate (REITs)4.0-6.0% 90%MediumMedium
Consumer Staples2.5-3.5% 60%LowHigh
Energy3.5-5.5% 50%HighMedium
Financials2.0-4.0% 50%MediumMedium
Healthcare1.5-3.0% 60%LowMedium
Technology0.5-1.5% 30%LowLow
Telecomm5.0-7.0% 80%MediumLow
Industrials1.5-2.5% 50%MediumHigh
Materials2.0-3.0% 50%HighLow

Frequently Asked Questions

REITs (Real Estate Investment Trusts) follow different accounting rules. They must distribute 90% of taxable income to maintain their tax status. Therefore, a standard Payout Ratio calculation using Net Income often looks alarmingly high (over 100%). Professionals use FFO (Funds From Operations) instead of EPS to evaluate REIT safety.
A Dividend Aristocrat is a company in the S&P 500 index that has increased its dividend payout for at least 25 consecutive years. This status generally implies financial stability and a management team committed to returning capital to shareholders, though past performance does not guarantee future results.
No. An extremely high yield (e.g., >8-10%) is often a distress signal. It implies the market has sold off the stock in anticipation of a dividend cut. If the dividend is cut, the stock price usually drops further, resulting in a "yield trap" where the investor loses significant capital.
Quarterly re-screening aligns with standard earnings report cycles. Companies declare dividends and report earnings four times a year. Checking the Payout Ratio after each earnings release ensures the dividend remains covered by current cash flow.