What problem does it solve?
This Skill helps you evaluate whether a dividend-stock’s payout is genuinely sustainable rather than a misleading high-yield “yield trap,” by checking cash earnings, cash-flow coverage, and balance-sheet resilience.
Core Features & Use Cases
- Dividend yield vs. valuation context: Compares dividend yield to peer/own history and connects income to expected total return.
- Payout sustainability checks: Evaluates coverage using earnings, operating cash flow, and free cash flow, with explicit formulas and warning thresholds.
- Dividend growth quality and balance-sheet flexibility: Assesses dividend CAGR quality against EPS/FCF growth and tests whether leverage and debt maturity risk could break the payout.
- Ex-dividend mechanics and dividend capture cautions: Flags why dividend capture is usually offset by price adjustment, taxes, spreads, and slippage.
- Sector-aware adaptation: Recommends adapting payout metrics for REITs, utilities, banks, MLPs, and insurers.
Quick Start
Ask: “Run a dividend sustainability analysis for TICKER, including yield quality, payout coverage (earnings, CFO, FCF), dividend growth quality, and a yield-trap checklist.”