The Fiscal Investor Dividend Stock Checklist
A disciplined, repeatable framework for building durable income — without chasing yield or ignoring risk. Use this as a screen first, then do your deeper research.
1 Market Size & Stability
Greater than $10 billion
Focuses on established companies with scale and staying power through cycles.
2 Economic Moat
Durable moat (brand, pricing power, switching costs, network effects)
Helps protect earnings and dividends when conditions tighten.
3 Cash Flow Quality
Consistent and growing free cash flow
Dividends are paid from cash, not accounting earnings.
4 Balance Sheet Strength
Less than 2.0
Reduces risk during slowdowns and in rising-rate environments.
5 Dividend Sustainability
Less than 40%
Leaves room for reinvestment, growth, and dividend safety.
6 Dividend Track Record
Paid dividends for 10+ consecutive years
Signals discipline and a real commitment to shareholders.
7 Dividend Growth
Greater than 7% annually
Protects purchasing power — your income stream must outrun inflation.
8 Income Today
Target range 1.5% – 2.0%
Balanced income without chasing yield (which often hides risk).
Tip: If a stock fails two or more items above, it’s not “bad” — it’s just not a fit for a durable dividend strategy.