Dividend Safety · Screener

Safest Dividend Stocks — A & B Grade Dividend Safety Screener

Only the most reliable dividend payers make this list. Every stock here earned an A or B dividend safety grade — meaning the payout is well-covered by earnings and cash flow.

Methodology: How Stocks Earn A & B Grades

Our dividend safety grade combines four factors. To earn an A or B, a stock needs strong scores across all dimensions — a single weak factor can pull the grade down.

  • Payout Ratio below 60% — The company retains enough earnings to reinvest in the business and fund the dividend comfortably.
  • FCF Coverage above 1.5x — Free cash flow covers the dividend with room to spare, even if earnings take a temporary hit.
  • Stable Earnings — Low coefficient of variation in earnings over the past 10 years. Volatile earners are more likely to face a quarter where the dividend isn't covered.
  • Growth Streak of 5+ years — Consecutive years of dividend increases signal management commitment to the payout.
A & B grades

Safest Dividend Stocks

View all ratings →
AAPL $273.05

Apple Inc.

Z-Score 9.75
Fair Value $223.83
Moat ★★★½☆
Div Safety A
Safe Zone MoS: -22.0%
ACN $195.06

Accenture plc

Z-Score 3.57
Fair Value $374.44
Moat ★★★½☆
Div Safety A
Safe Zone MoS: 47.9%
DAL $71.21

Delta Air Lines, Inc.

Z-Score 1.30
Fair Value $112.79
Moat ★★☆☆☆
Div Safety B
High Risk MoS: 36.9%
MSFT $418.07

Microsoft Corporation

Z-Score 9.19
Fair Value $417.54
Moat ★★★★½
Div Safety A
Safe Zone MoS: -0.1%
MU $448.42

Micron Technology, Inc.

Z-Score 13.53
Fair Value $234.29
Moat ★★☆☆☆
Div Safety B
High Risk MoS: -91.4%
NVDA $202.06

NVIDIA Corporation

Z-Score 93.80
Fair Value $432.40
Moat ★★★☆☆
Div Safety B
Safe Zone MoS: 53.3%
PEP $156.99

PepsiCo, Inc.

Z-Score 3.85
Fair Value $172.68
Moat ★★★★☆
Div Safety B
Safe Zone MoS: 9.1%
UVV $51.66

Universal Corporation

Z-Score 2.98
Fair Value $41.36
Moat ★★☆☆☆
Div Safety B
High Risk MoS: -24.9%
FAQ

Common questions

What does an A grade dividend mean?

An A grade means the dividend is extremely safe: payout ratio below 50%, free cash flow covers the dividend by 2x or more, earnings are consistent, and the company has a long streak of dividend increases. These are the dividends most likely to survive a recession without being cut.

How is this different from the full dividend ratings page?

The full ratings page shows every dividend-paying stock graded A through F. This screener only shows A and B grades — the safest dividends. Use the full ratings page if you want to see which stocks have concerning payout ratios (C-F grades).

Can even A-grade dividends get cut?

It's rare but possible. Black swan events (pandemic shutdowns, regulatory bans) can force even the safest companies to cut dividends. However, A-grade companies typically have enough cash reserves to maintain the dividend through 1-2 years of stress before considering a cut.

Should I only buy A-grade dividend stocks?

Not necessarily. A B-grade stock with a higher yield and strong growth prospects might be a better total return investment than an A-grade stock with a low yield. The safety grade tells you the probability of a dividend cut — it doesn't tell you whether the stock is a good investment overall. Always check the fair value and moat rating too.

Related

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Dividend Safety Hub

Learn how our safety grading system works and explore the full framework.

All Dividend Ratings

Every dividend stock graded A through F, including at-risk payouts.

The Strike Zone

Stocks that are simultaneously undervalued, safe, and moated.