METRIC FIT · DIVIDEND
Dividends
How much it shares
how much of its profit a company returns to shareholders, and for how many years it has kept doing so
My weights and the Jupick grade weights
Earnings
Financial health
Dividends
Valuation
Answer the questions and the weights you set will appear here.
What it means
People who put this axis first see a company as "a relationship that pays back". It is a view that something should land in your hands every year, whatever the share price does.
The strength of this view is that it looks at what a company does, not what it says. A dividend means cash actually going out, so a company that only looks good on paper has a hard time keeping it up. The dividend streak especially is not one year’s number but a record of many years, which is hard to dress up after the fact.
A dividend, though, is also money the company could have spent on growth, handed out instead. The fact that a company pays a lot in dividends does not tell you whether it made a better choice than putting that money into the business. When this axis weighs the most, companies at the growth stage drop out of view entirely.
How it shows up
- On a stock page you look for the dividend yield and the dividend streak first
- You put weight on whether the dividend was kept even in a year of poor results
- You rarely look at companies that have never paid a dividend
This axis’s weight in the Jupick grade
25%Share of the 100-point overall grade that this axis makes up
This is the axis with the smallest weight in the Jupick grade. A company that pays no dividend does not get 0 points on this axis but is scored with a neutral fill-in value, and how that works can be checked in the grade ledger on each stock page.
What this axis does not tell you
A high dividend yield may come not from a higher dividend but from a lower share price. The metric is a division, and its value rises when the denominator shrinks too.
Having paid last year does not mean paying this year. The company decides the dividend again every year.
A very high payout ratio can mean the company is paying out more than it earns. A higher value is not automatically a better one.
Metrics that measure this axis
- Dividend yieldKorean 1.62% · US 1.63%The dividends received over a year as a percentage of the current share price.
- Payout ratioKorean 26% · US 31%The share of net income paid out as dividends.
- Consecutive dividend yearsKorean 8 yrs · US 26 yrsHow many years in a row the company has paid a dividend without skipping, a measure of how steady its dividends are.
The middle value is the one that sits at the exact center when the stocks Jupick covers are lined up by size, recounted once a day. Stocks with fill-in values are left out, so the value is empty when the sample is too small.
What the other three axes look at
This assessment is reference content that describes ways of reading metrics. It is not a suggestion to trade any stock or product and not investment advice. Investment decisions and their responsibility rest with you.