What is a stock's dividend safety?

by garret_hahn , in category: Stocks and Equities , a year ago

What is a stock's dividend safety?

Facebook Twitter LinkedIn Telegram Whatsapp

1 answer

by jaylin.bartell , 10 months ago


A stock's dividend safety refers to the company's ability to continue paying dividends to its shareholders in a sustainable and consistent manner. It is an assessment of the company's financial strength, profitability, and cash flow generation to determine if it can afford to pay out regular dividends. A higher dividend safety indicates that the company is more likely to maintain or increase the dividend payments in the future, while a lower dividend safety raises concerns about the sustainability of the dividends.