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☕️ Sunday Coffee: Financial Score
Serhio MaxDividends
June 22, 2025
MaxDividends Mission: Helping & Supporting Everyone in Building a Growing Passive Income, Retiring Early, and Living Off Dividends.
No one wants to work forever, and the question of financial security becomes more pressing. Can we really count on enjoying life after retiring, without having to find another job just to make ends meet?
Intro
As the founder and CEO of BeatMarket (beatmarket.com) and MaxDividends, I actively use our platform’s innovations to make investment decisions.
At MaxDividends, we apply the Financial Score in the final stage of stock selection, choosing only companies with a score of 80 or higher. Today, I’d like to dive deeper into what the Financial Score is and why it matters.
💡 One More Secret Ingredient for the MaxDividends Strategy
Meet the Financial Score – your ultimate metric for selecting top stocks for your portfolio.
What Is the Financial Score?
The Financial Score is a rating system that evaluates a company's fundamental strength. It ranges from 20 to 99, with higher scores indicating stronger, more reliable companies.
Stocks with a score of 80+ are considered high-quality investments, while those rated 50 or below are seen as weaker choices. This score allows you to efficiently filter thousands of stocks and build investment strategies that maximize returns.
Global vs. Local Scores
The Financial Score consists of two components: Global and Local. The Global Score measures a company's strength on a worldwide scale, while the Local Score evaluates its performance within its home country.
Both scores use the same metrics but are ranked separately, helping you identify market leaders at both global and local levels.
Coverage and Methodology
Our team analyzes over 20,000 companies worldwide, covering:
North America: USA, Canada
Europe: UK, Finland, Sweden, Norway, Denmark, France, Italy, Spain, Germany, Poland, Netherlands, Belgium, Portugal, Ireland
Asia & Oceania: Japan, Australia, China, India
We collect financial data daily and review 25 years of historical reports to ensure thorough and accurate evaluations. This long-term perspective allows us to assess a company’s resilience during economic downturns.
The Financial Score Consists of 3 Key Components
1. Growth Evaluation
We analyze key financial metrics, including sales, operating profit, net income, earnings per share, return on equity, and their trends over time.
Understanding whether a company is growing and evolving—or stagnating and incurring losses—is essential for making informed investment decisions.
2. Dividend Policy Evaluation
A company’s approach to dividends reflects its transparency and management strength. At MaxDividends, we assess:
Whether the company pays dividends
Dividend trends and payment frequency
Whether dividends come from current income rather than past profits or debt
Dividend per share and the percentage of profit allocated to payouts
A well-structured dividend policy—whether through consistent payments, regular increases, or reinvesting all funds into growth—indicates strong, strategic business management.
We also consider share buyback programs. When a company repurchases its own shares, it signals management’s confidence that the stock is undervalued.
3. Stability Evaluation
This section measures the company’s overall financial health, including:
The ratio of total assets to total liabilities
The ratio of current assets to current liabilities
Debt-to-equity ratio
Growth sustainability
A financially stable company maintains a strong cushion to navigate market downturns and continue operating effectively during economic crises.
Scoring System: Growth – Dividend – Stability
Each section—Growth, Dividend, and Stability—has a maximum score of 5 points. If a company meets all top-tier business criteria, it earns a total of 15 points.
The system then ranks companies and converts this evaluation into the Financial Score:
The Global Financial Score ranks companies worldwide.
The Local Financial Score ranks companies within a specific country.
Why This Matters
Buy Strong Businesses, Sell Weak Ones
Historically, companies with a Financial Score of 90+ have significantly outperformed those with lower ratings. See how high-rated stocks (90+) compare to lower-rated stocks (60 and below) in terms of performance.
the USA broad market, 4,500+ stocks, equal-weighted. Comparison since Financial Score launch (2021–2024).
Canada broad market, 1,000+ stocks, equal-weighted. Comparison since Financial Score launch (2021–2024).
Japan broad market, 3,500+ stocks, equal-weighted. Comparison since Financial Score launch (2021–2024).
Selecting stocks based on a company's fundamental metrics is a smart way to identify the best businesses. The Financial Score enables the MaxDividends team to quickly spot market leaders and underperformers for long-term investing.
***
With MaxDividends Community you’ll always be part of a winning team and stop viewing the future as an uncertainty. Worry will fade, replaced by confidence and peace of mind. You’ll focus on doing what you love while your passive income continues to grow.
With respect for your well-being, Max
Feel free to email me at: [email protected]
If you like what we do, you can always provide additional support for the project.
Thank you for being a part of it!
MaxDividends Community
With MaxDividends Community you’ll always be part of a winning team and stop viewing the future as an uncertainty. Worry will fade, replaced by confidence and peace of mind. You’ll focus on doing what you love while your passive income continues to grow.
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Hundreds of premium members have already discovered the benefits of the community and app, earning passive income through dividends with MaxDividends. Their passive income keeps growing!
MaxDividends Community: What ELSE You’ll Get Here
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Ready-to-go step by step weekly guide to achieving financial freedom.
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My personal MaxDividends portfolios and short list with all the changes and updates weekly.
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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!
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
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These lists highlight the most promising undervalued dividend stocks with strong growth potential, helping you maximize returns on your investment.
Dividend Insights
Gain exclusive insights:
Top 5 MaxDividends Ideas of the Month
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These carefully researched ideas will guide you in making smart, informed decisions to build wealth with dividends.
🟢 And even MORE!
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MaxDividends Premium gives you all the tools you need to build, track, and grow your passive dividend income to retire early and live off dividends.
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MaxDividends Mission
Helping & Supporting Everyone in Building a Growing Passive Income, Retiring Early, and Living Off Dividends.
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