To: Max2.0 who wrote (23790 ) 12/21/2025 11:33:23 AM From: QTI on SI 9 RecommendationsRecommended By
Read Replies (1) | Respond to Re. I was curious whether these DSS people knew something important that I was missing. Dividend Safety Score (DSS v2.0) is a framework designed to answer one question:Is the income you’re receiving actually working for you — or is it quietly selling off your capital? total economic reality . High yield looks attractive Dividend keeps getting paid But the stock or fund keeps falling identify that outcome before it becomes obvious .Dividend Safety Score v2.0 = Momentum + Capital Preservation + Yield Reality whether capital is flowing toward or away from the asset . Multi-period price trends (not just one snapshot) Directional consistency Whether weakness is cyclical or persistent Why it matters: after price damage, not before. Over a multi-year period, is the asset flat, up, or down ? Is income offsetting capital loss — or merely masking it? How long would it take for dividends alone to recover losses? If breakeven requires more than ~5 years of perfect dividends, the yield is a mirage. Earned yield (cash flow supports payouts) Engineered yield (leverage, NAV erosion, ROC masking) unearned yield is .not automatically penalize: Return of capital Variable distributions Non-qualified income only when capital trends don’t support them .0 to 100 , grouped into tiers: 90–100 | Fortress – Income + capital both very strong 80–89 | Very Safe – Income works across cycles 70–79 | Safe – Acceptable, but monitor 60–69 | Caution – Income OK, capital fragile 50–59 | Elevated Risk – Yield may mask erosion <50 | Unsafe – Income is likely self-liquidating not : A dividend cut predictor A yield ranking system A short-term trading model A valuation model A promise that price won’t fall does not try to forecast markets.long-term commitments . 3-year capital behavior as a stress test Longer context where appropriate Recognition that valuation cycles exist — but capital outcomes still matter Income that works must preserve capital. Owning yield And renting yield while paying for it yourself Challenges “dividend aristocrat” assumptions Forces acknowledgment of opportunity cost Exposes long-running yield traps Treats CEFs, stocks, and ETFs on equal footing actually care about:
