// strategy template
Dividend Growth
Reliable, growing payouts backed by cash flow, not leverage.
// the lines that end the argument
2 criteria are hard: fail one and the score is capped no matter how well everything else scores.
- Dividend yield ≥ 2.0%
- Payout ratio ≤ 70.0%
What gets measured
| Criterion | Needs | Weight |
|---|---|---|
| Dividend yieldhardTrailing dividends over price. | ≥ 2.0%partial credit to 1.5% | 19%Missing: the position fails without it. |
| Payout ratiohardDividends over earnings. | ≤ 70.0%partial credit to 80.0% | 17%Missing: the criterion is skipped and its weight is dropped. |
| EPS CAGR 3yThree-year EPS compound annual growth. | ≥ 5.0%partial credit to 3.0% | 14%Missing: the criterion is skipped and its weight is dropped. |
| Net debt / EBITDATotal debt minus cash, over EBITDA (TTM). | ≤ 3.00partial credit to 3.50 | 11%Missing: the criterion is skipped and its weight is dropped. |
| ROENet income over shareholder equity. | ≥ 12.0%partial credit to 9.0% | 11%Missing: the criterion is skipped and its weight is dropped. |
| FCF yieldTrailing free cash flow over market cap. | ≥ 5.0%partial credit to 3.5% | 14%Missing: the criterion is skipped and its weight is dropped. |
Weight is each criterion's share of the whole rule-set, rounded for display. Every figure here comes from the same file the product scores with - the page cannot say one thing while the terminal does another.
What needs judgment
Dividend durability through cycles
14%Payout survived (or would survive) recessions; no serial cutters.
These are the criteria a formula cannot settle. The AI judges them against the guidance above and shows its reasoning next to the verdict; the arithmetic stays with the deterministic rules.
Rules about the portfolio, not the stock
- No single position above 10% of the portfolio.
- No sector above 35% of the portfolio.
These are checked against the book as a whole. A holding can clear every criterion above and still put the portfolio in breach by being too large.
Before you take it as given
This rule-set is a starting point. The moment a portfolio applies it, every threshold, weight and hard line is yours to move - and most people should move them, because the thresholds that make sense for a concentrated book are not the ones that make sense for a wide one.
It has not been backtested and Monsa does not claim it works. What Monsa does is narrower and checkable: hold these rules, and every night it will tell you which of your holdings still clear them and which quietly stopped.
Applying a template takes a minute. The part that is hard to do alone is still being held to it in eight months.