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Posts by Thurman Kelley:

Earnings Resiliency

Earnings Resiliency

Brookmont believes that dividend investing is as much of an art as a science and that more emphasis should be placed on the ability of a company to grow cashflows than relying on past growth.

The proprietary Bookmont dividend score decomposes the evaluation of a company’s ability to sustain and grow their free cash flows and dividends into five components: Earnings Resiliency, Dividend Capacity, Management Commitment, Valuation and Dividend Legacy. Below we walk through our process and philosophy as it relates to Earnings Resiliency.

Earnings Resiliency is designed to capture how consistently a company has been able to grow their free cash flow and earnings over multiple market cycles.