The DiviScore, explained in full
A single number from 0 to 100 captures how well a stock fits a long-term dividend strategy. Here is exactly how it is built, what it can do, and what it cannot.
What is the DiviScore?
Comparing dividend stocks quickly means juggling a dozen metrics: yield, payout ratio, dividend growth, debt, volatility. Each tells only part of the story, and together they rarely add up to a clear picture.
The DiviScore distils those dimensions into one traceable number between 0 and 100. It does not measure whether a stock will rise tomorrow. It measures how well it fits a long-term strategy of regular, ideally growing distributions with dividends reinvested.
The construction is what matters: the score is additive, built from four pillars. There is no hidden weighting and no multiplication that could quietly flatter the result. Each pillar contributes a fixed maximum, and the sum is the score.
The four pillars
Every pillar and component with its exact maximum, exactly as the score is actually calculated.
Performance
up to 35 ptsThe annualised total return over ten years, price gains plus reinvested dividends, drawn from a real investment simulation.
Dividend Quality
up to 35 ptsHow reliable and healthy the dividend policy is, judged on continuity, growth, yield and the payout ratio.
Fundamental Strength
up to 15 ptsA quick health check of the balance sheet and profitability behind the dividend.
Stability & Risk
up to 15 ptsHow calm and dependable the stock has been, rewarding low volatility and a long track record.
How to read the score
What the DiviScore cannot do
- It looks backward. The score is built on historical data and cannot predict future returns.
- It is quantitative only. Management quality, competitive position and regulatory risk are not part of the calculation.
- It favours the established. Long track records are rewarded, so young dividend payers start at a disadvantage.
- It is not a timing signal. A high score is not a statement about valuation or the right moment to buy.
The DiviScore is a screening tool, not investment advice. Past performance is not a reliable indicator of future results.
Two examples
Nearly three decades without a dividend cut, a solid yield in the rewarded range, strong fundamentals and low volatility. Allianz scores across all four pillars, hence the top rating.
View Allianz →A growth company that pays no dividend and reinvests its cash. Two of the four pillars reward distributions, which are absent here, so the score is low despite a notable share-price history.
View Zalando →Frequently asked
What is a good DiviScore?
Anything from 70 upward marks a strong dividend stock, and 85 or more is exceptional. Scores between 50 and 69 are solid, while below 50 points to clear weaknesses for a dividend strategy.
Is a high DiviScore a buy recommendation?
No. The DiviScore rates how well a stock fits a long-term dividend strategy based on historical data. It says nothing about valuation timing or whether today is a good moment to buy, and it is not investment advice.
How often is the DiviScore updated?
Prices feed in daily, and the full score, including dividends, fundamentals and the simulation, is recalculated on a regular schedule so the ratings stay current.
Why do some strong companies score low?
The DiviScore is built for dividend investors. A fast-growing company that pays little or no dividend, like a pure growth stock, scores low on dividend quality even if its share price has soared, because two of the four pillars reward reliable, rising distributions.
What happens when data is missing?
A stock is never punished for a gap in the data. Where a metric is unavailable, that component receives a neutral, mid-range value rather than zero, so the score stays fair and comparable.
Which stocks can receive a DiviScore?
Any company we cover across the major indices, from the DAX to the S&P 500, with at least a few years of price and dividend history. Very young listings without enough track record are not scored until the data allows a fair assessment.
Indices ranked by DiviScore
See which stocks come out on top across the major indices.