Welcome to part 3 of How to Pick A Top Dividend Company.

In Part 1, we discussed Qualitative Analysis of Economic Moats for Long Term Sustainable Advantage

In Part 2, we discussed How To Determine The Value of the Company

In Part 3, we will touch on How to Determine the Stability of Dividends and Potential Dividend Growth.

1. History of Dividend Payouts

2. Dividend Payout Ratio

3. Dividend Coverage Ratio

4. Dividend Cash Flow Coverage Ratio

5. Company Dividend Policy

History of Dividend Payouts

The first thing you want to look out for in a potential Dividend paying Company is the track record. The longer the track record the better; some of the Companies in US have over 30 years of Dividend Track Record. Younger stock exchanges such as Singapore and Malaysia will probably do well to have at least 5 to 10 years of Dividend Track Record.

So ...