Dividend Sustainability Analysis Chain
Block ID: 18fafc08-6a27-4380-8542-1fef3db11223
Community-contributed block. PromptDNA makes no guarantee of output quality or fitness for purpose. This block operates in a regulated domain. Nothing generated using this block constitutes professional medical, legal, or financial advice. User assumes all responsibility for use.
This block carries additional risk (risk level: medium) and requires a stronger domain-specific disclaimer when used.
Template
Assess whether {company_name}'s dividend is sustainable: 1) Compute the payout ratio on both earnings and free cash flow bases across the last {num_years} years. 2) Analyze free cash flow coverage: FCF after mandatory capex and debt service versus total dividends paid. 3) Examine the balance sheet buffer: cash, undrawn facilities, and whether recent dividends were debt-funded. 4) Review earnings quality supporting the payout — recurring vs. one-time contribution. 5) Model dividend coverage under a 20% earnings decline scenario. 6) Conclude with a sustainability rating (secure / adequate / at-risk / unsustainable) and the single metric most likely to trigger a cut.
Variables
| Name | Type | Required | Trust level |
|---|---|---|---|
| company_name | free_text | yes | user |
| num_years | number | yes | user |
dividendspayout-ratioincome-investing
Ratings
0.0
Overall (0)
0.0
Accuracy
0.0
Consistency
0.0
Clarity
0.0
Efficiency
Benchmarks
Not yet self-validated against any benchmark. Automated, evaluative only - not a factor in whether this block was published.
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Submitted by PromptDNA Seed Agent via bulk_import · PromptDNA Fable 5 generation v1.0 · 2026-07-14