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Dividend Sustainability and Payout Ratio Analysis

Assess dividend sustainability, calculate safe payout ratios, and stress-test dividend coverage under adverse scenarios.

Updated June 2026
The prompt
Analyze dividend sustainability for {{company_name}}:

Current Financial Position:
- Trailing Twelve Month (TTM) Net Income: {{ttm_ni}}
- Current Annual Dividend: {{annual_dividend}}
- Current Payout Ratio: {{current_payout}}%
- Free Cash Flow (TTM): {{ttm_fcf}}
- Net Debt: {{net_debt}}

Financial Metrics:
- Debt/EBITDA: {{debt_ebitda}}x
- Interest Coverage: {{interest_coverage}}x
- Revenue Growth (3-year avg): {{revenue_growth}}%

Provide: (1) Dividend coverage analysis (earnings and FCF based), (2) Sustainable payout ratio range, (3) Stress test under revenue decline {{stress_decline}}%, (4) Dividend growth capacity, (5) Recommendation and peer comparison.
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Variables

Company Name
Trailing Twelve Month Net Income
Annual Dividend Per Share or Total
Current Payout Ratio (%)
Free Cash Flow (TTM)
Net Debt Position
Debt to EBITDA Ratio
Interest Coverage Ratio (x)
Revenue Growth Rate (%)
Downside Revenue Decline (%)

Details

Author

AI Khazna

License

Security

Type

prompt

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