How It Works

Introduction To Dividend Talk Premium

As a dividend growth investor, you want two things: reliable, growing dividends that let you sleep well at night, and an understanding that you’re not overpaying for shares to maximise your dividend income potential.

Dividend Talk Premium gives you the tools to achieve both. We provide in-depth insights into the dividend safety profiles of European and US dividend growth stocks, along with our indication of their fair value.

Our Dividend Safety Methodology

Our methodology provides a clear and actionable way to assess the financial health of a company and its ability to consistently grow dividends. Here’s a quick overview of how we do it: 

Proven Growth

We focus on companies with a proven track record of growth, using metrics like revenue, earnings per share, and free cash flow growth. We believe that strong growth is key to a steady increase in dividends.

Balance Sheet

A strong balance sheet provides the foundation for reliable dividend payments. We evaluate debt levels, interest coverage, and liquidity to ensure companies can sustain their dividends even in tough times.

Future Prospects

We dive deep into the business model, industry landscape, and management quality to assess future growth potential. Our goal is to identify companies with strong, forward-looking opportunities that will support long-term dividend growth.

Dividend Affordability

We assess whether a company can afford its dividend by analyzing free cash flow and earnings payout ratios. Healthy payout ratios give us confidence that dividends are sustainable.

Dividend Commitment

Finally, we analyze the company’s commitment to dividends. This includes their dividend policy, past performance, and resilience during economic downturns. A clear and proven track record of growing dividends is essential.

Every company we assess is given a dividend safety score, offering you an instant snapshot of its risk level—from ‘Very Unsafe’ to ‘Very Safe.’ Additionally, the dividend stock card includes all the relevant details, allowing you to make your own informed judgment.

How we assess Fair Value

To determine fair value, we use both the Discounted Cash Flow (DCF) and Dividend Discount Model (DDM), along with key metrics like P/E ratio and dividend yield. Depending on the business type, we choose the model that aligns best with its earnings characteristics—i.e. DDM for cyclical businesses and DCF for more stable ones. In some cases, we use both models for a complete picture.

By combining dividend safety and fair value evaluations, we help you identify companies with the potential for consistent and growing dividends, enabling you to build a dividend growth portfolio focused on creating a growing passive income stream.

How it looks like

Here’s a glimpse of what a summary of our dividend stock cards look like in action, giving you a clear and concise overview at a glance.

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