☕️ Sunday Coffee: One More Secret Sauce of MaxDividends Strategy

As the founder and CEO of the BeatMarket (beatmarket.com) & MaxDividends, I actively use the project’s developments when choosing stocks for investment. In the case of MaxDividends, we use the Financial Score at the final stage of candidate selection, selecting only companies with a score of 80+. Today I would like to talk more about what Financial Score is.

What is the Financial Score?

Financial Score is a rating system based on a company's fundamental metrics. It ranges from 20 to 99, with higher scores indicating stronger companies.

Stocks rated 80+ are considered high-quality, while those rated 50 or below are seen as weaker investments.

This score helps you quickly sift through thousands of stocks to build unique investment strategies that boost your returns.

Global vs. Local Scores

The Financial Score has two components: Global and Local. The Global Score assesses a company's strength worldwide, while the Local Score focuses on its performance within its country.

Both scores use the same metrics but are ranked separately to help you identify local market leaders.

Coverage and Methodology

Our team evaluates over 20,000 companies worldwide, including:

- North America: USA, Canada
- Europe: UK, Finland, Sweden, Norway, Denmark, France, Italy, Spain, Germany, Poland, Netherlands, Belgium, Portugal, Ireland
- Asia and Oceania: Japan, Australia, China, India

We gather financial data daily and analyze the past 25 years of reports to ensure robust evaluations. This long-term perspective helps us assess a company's resilience during economic downturns.

Financial Score Comprises 3 Key Components

1. Growth Evaluation

We analyze data on sales, operating profit, net income, earnings per share, return on equity, and the trends of these metrics.

It's crucial for us to understand if the company is growing and developing rather than stagnating and incurring losses.

2. Dividend Policy Evaluation

A consistent management approach to investor relations indicates a transparent governance structure and strong management. The dividend policy is a significant aspect of analyzing any public company.

At MaxDividends, we analyze the presence or absence of dividend payments, the overall payment trends, and the frequency of payments. It's important that dividends are paid from current income, not from past profits or loans. We look at the dividend per share and the percentage of profit allocated for distribution.

When a company consistently pays or does not pay dividends, regularly increases them, or directs all funds towards development, it indicates a well-planned business management and development strategy.

We also pay attention to the presence of share buyback programs. When a company buys back shares, it indicates management's confidence that the shares are undervalued.

3. Stability Evaluation

In this section, we assess the company's overall financial health. This includes the ratio of total assets to total liabilities, the ratio of current assets to current liabilities, the debt-to-equity ratio, and growth sustainability. It's crucial for a company to have a cushion to operate effectively during a market crisis.

Each section (Growth-Dividend-Stability) has a maximum score of 5. If a company meets all the top-tier business criteria, it scores 15 points.

The system then ranks companies and converts the evaluation into the Financial Score. The Global Financial Score considers all evaluated companies worldwide, while the Local Financial Score only considers companies within a specific country.

Why This Matters

Buy Healthy Businesses, Sell Stagnating Ones

Historically, companies with a rating of 90 and above significantly outperform those with lower ratings. Check out some results comparing the performance of stocks with high ratings (90+) against those with low ratings (60 and below).

Choosing stocks based on the analysis of a company's fundamental metrics is a wise investment of your time to identify the best businesses. The Financial Score helps MaxDividends Team to quickly identify leaders and laggards in long-term investing.

🙏 To focus on what we love, we need stop worrying about daily expenses. For me, the solution was creating a growing passive income stream through dividend stocks.

As an author of the MaxDividends Strategy I follow it to pick up high-yield & dividend growth stocks to live off dividends and retire early. I share my way and methodology of achieving the dream goal to live off dividends step by step.

MaxDividends Key Concept

Predictability in important things is the foundation of peace of mind. Peace of mind is the basis of financial well-being. MaxDividends is all about peace of mind.

At MaxDividends, we focus on a dividend growth strategy. It’s a great fit for investors who want capital appreciation, a decent level of safety, and growing income.

As the name suggests, dividend growth investing is all about finding stocks that pay dividends and can keep growing them over time. MaxDividends is all about that plus maximizing yields to get the most from dividends and boost growing passive income on your side.

Dividend strategy has been proven to beat the broader market over time, provided the stocks selected can withstand threats from competition and economic recessions.

In MaxDividends Community we follow our time-tested strategy for tapping into overlooked dividend plays that can make your portfolio more resistant to recessions and other market panics and pack on consistent gains for years to come.

Top Secret Stuff is Going Inside

MaxDividends Mission

Help & support everyone on the way to build growing passive income, retire early and live off dividends.

Build your own dividend machine with MaxDividends to launch growing passive income, retire early and live off dividends with community like-minded

MaxDividends Community

MaxDividends is subscriber’s supported newsletter with community and community member’s tools to start building long-term growing passive income to live off dividends and retire early.

Choosing a strong environment is the key to achieving outstanding results. If you surround yourself with people who dream bigger than you, you increase your chances of reaching greater heights. Surround yourself only with those who will support you on your path to success.

MaxDividends Community: What You’ll Get Here

• MaxDividends Stocks of the Week: Top 10 Undervalued, High-Yield & Dividend Growth Stocks Every Week

+Bonus - access to full list of MaxDividends stocks updated weekly. Boost your passive income for living off dividends.

• Top Dividend Insights

Unlock Top-notch dividend growth investment ideas and insights, handpicked to help you crush your financial goals, retire early and live off dividends.

• RoadMap to Live Off Dividends

Ready-to-go step by step weekly guide to achieving financial freedom.

• Easy Peasy: Build Your MaxDividends Portfolio to Live Off Dividends with Pre-Selected Stock Sets

Grab ready-made MaxDividends stock sets starting at $300, $500, or $1000 each week.

• MaxDividends Bussiness Overview

Posts & Podcasts with deep dives into the top dividend stocks we hold. Key points, current statement, perspectives and consensus.

• Max Dividends Portfolio: Goal $12,000 Monthly for 120 Months

My personal MaxDividends portfolios and short list with all the changes and updates weekly.

• MaxDividends App & Tools Access

Comprehensive tools to help you on the way retire early and live off dividends.

• Community Like-Minded Access

Stay in touch with me and other MaxDividends followers. MaxDividends community chat of like-minded who wants to live off dividends and retire early. Discuss ideas, share insights, build plans and set goals. Support, motivation, like-minded - all in!

• Sunday Coffee

My personal life & business column where I share life moments, insights on stock investing, long-term investment philosophy, and intriguing thoughts to benefit you.

🟢 What ELSE You’ll Get

• Top Dividend Ideas

• Undervalued Dividend Lists

Undervalued Dividend Eagles (updated monthly) Undervalued Dividend Kings (updated monthly) Undervalued Dividend Aristocrats (updated monthly)

• Dividend Insights

Top 5 MaxDividends Ideas of the Month Top 3 the Most Promising Dividend Ideas of the Week List of Dangerous Dividend Stocks (updated monthly)

🟢 And even MORE

The Best Dividend Tools in the World from MaxDividends Team

• Dividend Screener: Find Your Own Hidden Gems

• Dividend Portfolio Tracker: Take Under Control All Aspects of Your Passive Income

• Dividend Checker: Check Financial and Dividend Score 19000+ companies worldwide

FAQ

• The 5 Rules of Timeless Dividend Investing. PDF Book

• My Own High Yield Dividend Growth Story

• How We Choose MaxDividends Stocks - A Deep Dive

• MaxDividends Strategy - Key Rules for Living Off Dividends

• How Well does the MaxDividends Strategy Work for Building a Growing Passive Income

• One More Secret Sauce of MaxDividends Strategy

MaxDividends Mission: Help & Support Everyone On the Way of Building Passive Growing Income, Retire Early and Live off Dividends