Good American divident stock

Screening Filters

1. is_index_component: GSPC (S&P 500)

   • Purpose: Limit results to companies in the S&P 500 index.
   • Rationale:
     • The S&P 500 consists of large, established U.S. companies that are generally more stable and widely followed.
     • For “good dividend stocks,” investors often prefer larger, higher‑quality businesses with proven track records and better governance—exactly the kind that tend to be in the S&P 500.

2. region: United States

   • Purpose: Ensure all companies are U.S.-based.
   • Rationale:
     • The user explicitly asked for “American” dividend stocks.
     • This focuses on companies primarily operating under U.S. regulations, accounting standards, and tax regimes, which matter for dividend reliability and taxation.

3. list_exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, NYSE American)

   • Purpose: Include only companies listed on major U.S. exchanges.
   • Rationale:
     • Major exchanges have listing standards (size, reporting, disclosures) that typically exclude very small, illiquid, or lower‑quality names.
     • This aligns with the idea of “good” dividend stocks—liquid, regulated, and widely traded.

4. debt_equity: max 1.5

   • Purpose: Filter for companies with moderate or lower leverage.
   • Rationale:
     • Too much debt can put dividends at risk in downturns, as cash may need to go to interest and principal payments.
     • A debt‑to‑equity cap of 1.5 helps focus on businesses with more balanced capital structures and a better chance of sustaining dividends.

5. dividend_5yr_cagr: min 3%

   • Purpose: Require a minimum 5‑year compound annual growth rate for dividends of at least 3%.
   • Rationale:
     • “Good” dividend stocks are not just payers but growers—companies increasing their payouts over time to keep up with inflation and reward shareholders.
     • A 3%+ 5‑year CAGR indicates a history of consistent dividend growth, not just a one‑off payment.

6. dividend_yield_ttm: min 2%, max 6%

   • Purpose: Target a reasonable, sustainable dividend yield range.
   • Rationale:
     • A minimum of 2% screens out very low yielders that may not be attractive to dividend investors.
     • A maximum of 6% helps avoid “yield traps” where very high yields may signal financial distress or an unsustainable payout that could be cut.
     • This range is typical for established, quality U.S. dividend names.

7. dividend_payout_ratio: min 20%, max 80%

   • Purpose: Ensure dividends are neither token nor overstretched relative to earnings.
   • Rationale:
     • Below ~20% may mean the company isn’t really focused on returning cash to shareholders; the dividend might be minimal.
     • Above ~80% suggests most earnings are paid out, leaving little cushion for reinvestment, downturns, or future growth—raising the risk of cuts.
     • The 20–80% band captures companies with meaningful but generally sustainable payouts.

Why Results Match:

• They are American: all companies are U.S. based and listed on major U.S. exchanges.
• They are established and higher quality: limited to S&P 500 components, which are larger, more stable firms.
• They are dividend-focused: pay a meaningful yield (2–6%) and have a track record of growing dividends (5‑year CAGR ≥ 3%).
• They are financially sound enough to sustain dividends: moderate leverage (debt/equity ≤ 1.5) and a balanced payout ratio (20–80%) reduce the risk of dividend cuts.

Together, these filters aim to surface solid, U.S.-based, large‑cap companies with reliable and growing dividends—matching the idea of “good American dividend stocks.”