Overview
Sustainable Dividend Ratio, is a core indicator used to evaluate financial condition and operating performance. Quarterly (Q) scope increases short-term volatility visibility.
Formula
Free Cash Flow (Trailing 12 Months) / Dividends (Trailing 12 Months)
How to Interpret
High Value
When Sustainable Dividend Ratio stays high, persistence should be validated with cash and margin evidence.
Low Value
When Sustainable Dividend Ratio is low, confirm whether weakness is cyclical or structural via operating cash evidence.
Where It Is Used
Defining Sustainable Dividend Ratio alert thresholds against the company’s own historical median reduces false positives.