Like many others, I enjoy buying stocks that pay good dividends. The challenge is in identifying companies that will be able to pay good dividends year after year.Many might suggest reading through years of financial statements, as well as getting to know the top management and their vision for the company as it is the ideal way of projecting its future cashflow and thus, dividends.

I do agree that that might be a good way, but the lazy statistician part of me prefers to view it as a statistical game (because looking forward, I believe everything is probabilistic no matter how well you research, hence why not let statistics and computers do their jobs as they are more scalable and suitable in a probabilistic world, but this is a story for another time).

Therefore, in my previous two articles (linked here and here), I was looking at how …