Safe Dividend Stocks

Dividend safety comes from multiple factors working together: (1) Sustainable payout ratio, ideally FCF payout under 70%, leaving room for reinvestment and dividend growth, (2) Strong balance sheet with low debt-to-EBITDA, meaning the company isn't borrowing to fund dividends, (3) Consistent cash flow generation across economic cycles, (4) Track record of maintaining or growing dividends through recessions. This screen requires minimum 4/5 scores for both Dividends and Financial Health, plus payout ratios below 70%. These combined filters identify companies with the financial strength to maintain payouts when the economy weakens.

For most companies, FCF payout ratios under 60-70% are considered safe, leaving room for dividend growth and business reinvestment. This screen uses 70% as the maximum. However, context matters: REITs legally must distribute 90% of taxable income, so higher payout ratios are normal. Utilities have stable, regulated cash flows supporting higher payouts. Meanwhile, cyclical industries like energy or materials should maintain lower ratios to buffer commodity price swings. Very low ratios (<30%) in stable businesses may signal room for dividend increases or that management prioritizes other uses of capital.

Focus on companies with: (1) Essential products/services like utilities, consumer staples, and healthcare, which tend to maintain demand in recessions, (2) Low debt, as companies with debt-to-EBITDA under 2x have more flexibility during downturns, (3) High Financial Health Scores indicating strong balance sheets, (4) Dividend history through past recessions (did they maintain payouts in 2008-2009 and 2020?). This safe dividend screen filters for financial strength and payout sustainability, surfacing companies more likely to maintain dividends when markets decline. Consider diversifying across sectors since even 'safe' industries can face specific challenges.

Stock Unlock updates all stock data daily, including prices, dividend yields, financial ratios, and Stock Scores. Our screener covers 100,000+ stocks across 70+ global exchanges, ensuring you see current fundamentals rather than stale data from weeks ago.

Stock Scores are our proprietary 1-5 ratings across seven dimensions: Valuation, Growth, Profitability, Financial Health, Dividends, Management, and Analyst sentiment. Unlike one-size-fits-all systems that treat banks, tech stocks, and REITs the same way, our algorithms are calibrated per industry using metrics specific to each business type. Scores update in real-time as prices change and when new financial data arrives. Green (4-5) indicates strength, yellow (3) is neutral, red (1-2) signals caution. They're not trading signals; they help you quickly assess fundamental health across 100,000+ stocks. Learn more about Stock Scores →

Most screeners like Yahoo Finance or Finviz cover only US stocks with basic filters. Stock Unlock is a complete research platform: 40+ screening criteria across 100,000+ stocks on 70+ global exchanges, proprietary Stock Scores calibrated per industry, portfolio tracking with brokerage sync, dividend analysis with 35 years of history, and tools for valuation, comparison, and deep fundamental research. Free accounts get several searches per week, with unlimited access for power users. For international investors or anyone wanting deeper analysis than basic screeners provide, Stock Unlock surfaces opportunities that US-only tools miss entirely.