# Dividend Stock Risk Analysis

## User question

> I want to analyze a high-dividend stock. What risks should I check first?

## Recommended skill

```text
biga-dividend-skill/SKILL.md
```

## Example output

```markdown
# High-Dividend Stock Risk Checklist

## 1. Dividend yield source

- Is the high yield driven by stable dividends or a sharp stock price decline?
- Is the current dividend a one-off special dividend?
- Is the payout ratio unusually high compared with historical levels?

## 2. Cash flow coverage

- Is the dividend covered by operating cash flow?
- Does the company need debt, asset sales, or cash reserves to maintain dividends?
- Are capital expenditures likely to pressure future free cash flow?

## 3. Earnings cycle risk

- Are current earnings near a cyclical peak?
- Is the company in a commodity, financial, or regulated industry with unstable profits?
- Could future earnings fall while the dividend expectation remains high?

## 4. Balance sheet risk

- Are debt levels and interest expenses manageable?
- Are there large impairment risks or hidden liabilities?
- Could regulation, pricing policy, or industry downturns affect distributions?

## 5. Follow-up verification

- Review the last three years of cash flow statements.
- Compare dividend per share with free cash flow per share.
- Check management's dividend policy and capital allocation history.

> This is for investment research and education only. It is not investment advice.
```

## Boundary note

This example does not recommend any specific stock, target price, entry point, exit point, or expected return.