Glossary
Dividend safety
A rating of how reliably a company can sustain its dividend through downturns.
What it is
Dividend safety measures how likely a company is to maintain its dividend without cutting it. It factors in payout ratio, free cash flow coverage, debt levels, and earnings stability.
Why it matters
An ex-dividend date looks attractive for income trades — but only if the dividend is safe. A company with a high yield but a dangerous payout ratio is a dividend trap: the yield is high because the market already suspects a cut. A cut collapses the stock price and eliminates the income you were counting on.
In the platform
The Long Term tool includes dividend safety in its Quality Score calculation. The Dividend Calendar shows ex-dates and pay-dates across the market so you can time income trades — but always cross-check the dividend safety rating before entering a covered call or CSP strategy on a high-yield name.
Where you will see it
- Long TermThe investing lens for names you hold, not trade: fundamentals, valuation, and trend context so you know a position is still worth keeping.
- Dividend CalendarEx-dates, pay-dates, and yields in one view: time your income and dividend-capture trades without landing on the wrong side of an ex-date.