Dividend Methodology
What actually makes a dividend safe — and when to walk away. Payout ratio + coverage math, growth vs yield trade-offs, the warning signs of a dividend trap, special vs regular dividends, international taxation.
Articles in this series
- Part 1·April 20, 2026·4 min read
Dividend Safety: Payout Ratio + Cash Flow Coverage
EPS payout ratio is the textbook test; FCF payout ratio is the honest test. When the two diverge, the cash version predicts the next dividend cut.
- Part 2·April 20, 2026·4 min read
High Yield vs Dividend Growth — The 30-Year Tradeoff
6% yield + 0% growth vs 2% yield + 10% growth: same 30-year cumulative income, but only if growth holds. Why the resilient mix is a barbell of both.
- Part 3·April 20, 2026·4 min read
Dividend Traps: The 5 Warning Signs Worth Memorising
High yield can mean opportunity or imminent cut. Five patterns: 2× peer yield, 100%+ payout, rising debt, special-instead-of-hike, structural decline.
- Part 4·April 20, 2026·4 min read
Special vs Regular Dividends — How to Compute Yield
TTM yield includes specials and can be misleading; forward yield uses only declared regular dividend. Which to use for income planning vs comparison.
- Part 5·April 20, 2026·4 min read
International Dividend Tax Withholding — Quick Reference
UK 0%, US 15% with W-8BEN, CH 35%, DE 26%, KR 22%, HK 0%. Headline yield is gross; effective yield = gross × (1 − withholding). Why it changes the comparison.
- Part 6·April 20, 2026·4 min read
Dividend Aristocrats and Kings — Filter, Not Thesis
25-year (Aristocrats) and 50-year (Kings) dividend-raise streaks. Useful as quality screen and risk damper — but the alpha premium is thin after sector adjust.