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Strategy profile

Dividend Quality: 4 Factors | Backtest & Top Stocks 2026

Continuity, payout ratio, yield and growth in one score: identify reliable payers, avoid dividend traps, automated and refreshed daily.

Save the strategy and StockScorer checks its rules for you every day. You'll get a heads-up whenever a stock crosses the upper or lower score threshold.

✓ Refreshed daily✓ Rule-based: no black box✓ Fully customisable
Total return in the backtestAvg. +13.5 % p.a.
+254.5 %

MSCI World over the same period: +240.1 %

Start: Strategy 100Q2 2016: Strategy 100Q3 2016: Strategy 100Q4 2016: Strategy 108Q1 2017: Strategy 113Q2 2017: Strategy 110Q3 2017: Strategy 114Q4 2017: Strategy 125Q1 2018: Strategy 120Q2 2018: Strategy 129Q3 2018: Strategy 142Q4 2018: Strategy 124Q1 2019: Strategy 147Q2 2019: Strategy 150Q3 2019: Strategy 163Q4 2019: Strategy 171Q1 2020: Strategy 128Q2 2020: Strategy 154Q3 2020: Strategy 171Q4 2020: Strategy 181Q1 2021: Strategy 207Q2 2021: Strategy 222Q3 2021: Strategy 224Q4 2021: Strategy 255Q1 2022: Strategy 242Q2 2022: Strategy 226Q3 2022: Strategy 236Q4 2022: Strategy 242Q1 2023: Strategy 239Q2 2023: Strategy 256Q3 2023: Strategy 258Q4 2023: Strategy 263Q1 2024: Strategy 304Q2 2024: Strategy 296Q3 2024: Strategy 310Q4 2024: Strategy 317Q1 2025: Strategy 300Q2 2025: Strategy 274Q3 2025: Strategy 280Q4 2025: Strategy 306Q1 2026: Strategy 329Q2 2026: Strategy 35579153227301375StartQ1 2021Q1 2026Q2 2026StrategyBenchmark (MSCI World)

Past performance is not a reliable indicator of future results.

+13.5 %Return p.a. (backtest)
+0.5 %vs. MSCI World p.a.
16,265Stocks analysed
SmallMidLargeCap classes
How the profile stands today

What the profile looks like today

As of 09/30/2026
609High
4,449Medium
11,207Low
Classification in the universe
High 4 %Medium 27 %Low 69 %
Distribution of scores in the market
-4
-3
-2
-1
0
+1
+2
+3
+4
+5
Score distribution as a data table
ScoreNumber of stocks
-450
-3423
-21,434
-1846
06,907
+11,547
+21,638
+31,957
+4854
+5609
Countries of the high-match stocks
US 50%JP 35%CA 5%IT 5%DE 5%
How rules turn into a score

How the scoring works

Every stock runs through the same disclosed rules. The points add up to a score, traceable down to the individual rule.

01
Rules

Each rule checks a metric against a threshold, for example ROE above 15 %.

02
Points & weighting

You decide how much each rule counts: from +1 to +3 or −1 to −3.

03
Score & classification

The sum is the score. That gives three classes: high, medium, low match.

Low match
< 2 points
Medium match
2 – 4 points
High match
≥ 5 points

These terms describe only the match with the criteria, not a recommendation to buy or sell.

What the strategy measures a stock against

What is behind this strategy?

Profile of a stock with a high match
50%100%High match · Profitability: 50%High match · Growth: 0%High match · Quality: 67%Market average · Profitability: 24%Market average · Growth: 20%Market average · Quality: 17%ProfitabilityGrowthQualityHigh matchMarket average
High matchMarket average
01
How reliable is the dividend?

Years without a cut are the hardest evidence of a resilient payout policy.

02
Is it truly earned?

The payout ratio based on earnings per share exposes substance payers.

03
Is the yield worthwhile?

A yield above 1% ensures there is a substantive distribution at all.

04
Is the payout growing?

At least three raises in ten years, including the most recent one, count as a genuine growth signal.

Excerpt from the rule profile

These exact rules run over every stock daily.

4 of 8 rules
Dividend Streakisat least10+2 pts
Group:AND
+1 pts
Dividend Streakisat least5
Dividend Streakisless than10
All of these conditions must be met
Group:AND
+1 pts
Payout Ratioisat least25
Payout Ratioisless than75
All of these conditions must be met
Group:AND
−1 pts
Payout Ratioisat least75
Payout Ratioisless than90
All of these conditions must be met
+ 4 more rules in the profile

After a free sign-up: the full profile in the rule editor to copy, adjust thresholds and save as your own starting profile.

See & copy all rules
What the backtest shows, and what it does not

How has the profile performed?

Strategy: +254.5%Benchmark (MSCI World): +240.1%
Start: Strategy 100Q2 2016: Strategy 100Q3 2016: Strategy 100Q4 2016: Strategy 108Q1 2017: Strategy 113Q2 2017: Strategy 110Q3 2017: Strategy 114Q4 2017: Strategy 125Q1 2018: Strategy 120Q2 2018: Strategy 129Q3 2018: Strategy 142Q4 2018: Strategy 124Q1 2019: Strategy 147Q2 2019: Strategy 150Q3 2019: Strategy 163Q4 2019: Strategy 171Q1 2020: Strategy 128Q2 2020: Strategy 154Q3 2020: Strategy 171Q4 2020: Strategy 181Q1 2021: Strategy 207Q2 2021: Strategy 222Q3 2021: Strategy 224Q4 2021: Strategy 255Q1 2022: Strategy 242Q2 2022: Strategy 226Q3 2022: Strategy 236Q4 2022: Strategy 242Q1 2023: Strategy 239Q2 2023: Strategy 256Q3 2023: Strategy 258Q4 2023: Strategy 263Q1 2024: Strategy 304Q2 2024: Strategy 296Q3 2024: Strategy 310Q4 2024: Strategy 317Q1 2025: Strategy 300Q2 2025: Strategy 274Q3 2025: Strategy 280Q4 2025: Strategy 306Q1 2026: Strategy 329Q2 2026: Strategy 35579153227301375StartQ2 2017Q3 2018Q4 2019Q1 2021Q2 2022Q3 2023Q4 2024Q1 2026Q2 2026StrategyBenchmark (MSCI World)

The backtest shows a total return of +254.5%. The MSCI World reaches +240.1% over the same period.

+13.5%Return p.a.
+13.0%Benchmark p.a.
-25.5%Largest decline
+0.78Sharpe Ratio

Survivorship-free since June 30, 2015: the index composition is applied point-in-time.

Historical period, quarterly rebalancing, no taxes or fees. Past performance is not a reliable indicator of future results.

The way of working this profile suits

Who is this strategy for?

For income investors with a long horizon who value predictable distributions over maximum price upside, without falling for the classic dividend trap.

Adopt, customise & track this strategy
What people usually ask before starting

Frequently asked questions

How does this differ from the DividendenAdel approach?
The four-factor principle (continuity, payout, yield, growth) follows the magic square popularised by Christian W. Röhl. StockScorer implements it as its own point system with automated metrics and has no affiliation with the trademark owner.
Why are very high dividend yields not rewarded?
Because statistically they are more often a warning sign than an opportunity: an 8% yield usually comes from a halved share price. The square rewards coverage and continuity instead, the drivers of reliably sustainable payouts.
Is this a recommendation to act?
No. StockScorer provides automated, rule-based assessments for information only. Nothing here replaces individual financial advice or constitutes a solicitation to buy or sell securities.
Can I adjust the payout bands?
Yes. After free registration you can copy the profile and modify it in the rule editor: bands, point values and thresholds are fully configurable.
Why does growth now count via raises instead of a growth rate?
Because it is closer to the DividendenAdel methodology sheet: Röhl requires at least three raises in ten years, including the most recent one, not a fixed percentage growth rate. The earlier 5-year CAGR threshold was an approximation, not an original requirement.

Method & Criteria

A high dividend yield alone is no mark of quality. Often it is merely the result of a collapsed share price. The 4-factor check therefore tests the magic square of dividend quality, as popularised by Christian W. Röhl with his DividendenAdel approach: Has the dividend gone uncut for years? Is it covered by earnings (25–75% payout)? Does it offer a real base yield? And has it been raised at least three times in the past ten years, most recently just lately? Substance payers (companies funding their dividend from the balance sheet or on credit) are punished hard.

How does the 4-factor check work?

Continuity: a dividend uncut for at least ten years earns +2 points, five to nine years +1. Payout ratio: if the dividend sum amounts to 25–75% of earnings per share, the balance counts as healthy (+1); 75–90% leaves little buffer (−1); from 90% of earnings, or with a dividend paid without an earnings base, it is substance distribution (−2). On top come +1 for a yield above 1% and +1 for a growth signal: at least three raises in the past ten years, including the most recent one; a dividend cut in the past year costs 2 points.

The score ranges from −4 to +5; the upper threshold is a uniform 5 points across all size classes. A high match therefore demands all four factors at once, the original is a strict pass/fail test across the whole square: yield alone is never enough.

The four factors at a glance

Continuity: years without a dividend cut (≥ 10 years: +2, 5–9 years: +1).

Payout ratio (earnings basis): 25–75% ideal (+1), 75–90% critical (−1), from 90% or without an earnings base: dividend trap (−2).

Yield: above 1.0% (+1), as a minimum return, not a maximisation target.

Growth: at least 3 raises in 10 years, including the most recent one (+1); cut in the past year (−2).

Strengths, limits and calculation notes

The square's strength: it punishes exactly the constellation that classic dividend rankings reward, optically high yields created only by falling prices or uncovered payouts.

Calculation note: since the fidelity round (23 August 2026), the payout ratio runs on an earnings basis (dividend per share relative to earnings per share), as described in the DividendenAdel methodology sheet, replacing the previously used free-cash-flow approximation. Röhl's own three-year smoothing of the payout ratio cannot be mapped with daily data and remains a documented simplification. The growth criterion now counts raises instead of a CAGR threshold, closer to the original than the earlier five-year growth rate. Continuity measures years without a cut, the even stricter view of “years with an increase” gets its own strategy.

Who is this strategy for?

For income investors seeking dividend quality rather than dividend size, as a core strategy or as a filter over their own watchlist.