Reading Stock Scores
Every stock and ETF research page includes an Overall Rating — a letter grade from A+ through F backed by six transparent subscores. Here is exactly how to read it.
The Overall Rating is a quality snapshot — not a dividend safety guarantee.
It combines valuation, profitability, and balance-sheet signals into one grade. A high grade means strong fundamentals on paper today. It does not by itself predict future dividend cuts, stock price moves, or total return. Use it alongside payout history, sector context, and your own research.
Where to Find It
Open any ticker page (e.g. /stocks/AAPL). The Overall Rating card sits in the right column with:
- A letter grade badge (A+, A, A−, B+, … through F)
- A semicircular dial showing the numeric composite out of 5
- Six subscore bars, each rated 0–5 (or N/A when data is missing)
The Six Subscores (0–5 each)
Each subscore is computed from live financial data in our quote snapshot and normalized to a 0–5 scale. Missing data renders as N/A — we never fabricate a zero to fill gaps.
DCF Score
Discounted cash flow valuation — how the current price compares to an intrinsic value estimate. Higher means more attractive on a DCF basis.
Source field: discountedCashFlowScore
ROE Score
Return on equity quality — how efficiently the company generates profit from shareholder equity.
Source field: returnOnEquityScore
ROA Score
Return on assets efficiency — profit generated relative to total assets on the balance sheet.
Source field: returnOnAssetsScore
D/E Score
Debt-to-equity health — lower leverage scores higher. High debt increases dividend cut risk in downturns.
Source field: debtToEquityScore
P/E Score
Price-to-earnings value — whether the stock looks cheap or expensive relative to trailing earnings.
Source field: priceToEarningsScore
P/B Score
Price-to-book value — market price vs. book value per share.
Source field: priceToBookScore
Letter Grade & Composite Score
The letter grade (rating) and numeric composite (overallScore, 0–5) are pre-computed in our data pipeline from the six subscores. You will see grades like:
Grade scale (best to worst)
S+, S, S−, A+, A, A−, B+, B, B−, C+, C, C−, D+, D, D−, F
Curated lists such as "Top Rated" filter for overallScore ≥ 3 (out of 5) combined with minimum market cap and dividend streak requirements — quality-first screening, not yield-chasing.
Quick Insights on the Stock Page
Separate from the Overall Rating card, each stock page shows three dividend-focused verdicts derived from the same live data:
Payout Safety
Sector-aware thresholds on the TTM payout ratio:
- Very Safe / Safe / Stressed — based on payout vs. sector norms
- REITs use higher thresholds (90% / 110%) because of their business model
- Utilities use 75% / 95%
- Most other sectors use 60% / 80%
- At Risk — shown when the company has negative earnings (P/E < 0)
Dividend Profile
Classifies growth behavior using 5-year dividend CAGR when available: High Grower (>12%), Grower (>5%), Stable (0–5%), or Declining (negative). Without a 5-year CAGR, a paying stock with streak data may show New. REITs with stressed payout show Stressed regardless of growth rate.
Valuation
Uses DCF score first: ≥3.5 = Undervalued, ≥1.5 = Fair, below = Overvalued. When DCF is unavailable, falls back to P/E and price-to-sales heuristics. Negative P/E companies are never labeled Undervalued.
Overall Rating vs. other scores on Dividend Wealth
Overall Rating (this page) — stock-level composite of DCF, ROE, ROA, D/E, P/E, and P/B. Shown on every ticker scorecard.
Resilience Score — portfolio-level grade (A/B/C) measuring how durable your dividend income is, weighted by forward income. Read the Resilience methodology →
Safety Score (roadmap) — a separate 0–100 dividend safety model built from FCF payout, earnings payout, leverage, earnings quality, and track record with sector-adjusted thresholds. Documented in our internal methodology; rolling out with full transparency on the scorecard.
What the Score Does Not Tell You
- Does not predict stock price or total return — a "Very Safe" 1% yielder can still underperform.
- Does not include analyst forward guidance — only reported fundamentals.
- Does not account for special dividends — regular dividend history only.
- May show N/A for micro-caps, recent IPOs, or tickers with incomplete financials.
- ETFs use adapted metrics; some subscores may be limited compared to individual stocks.
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