Meanwhile, S&P 500 dividend yield has decreased to the mid-1.25% range, near historical lows. These trends indicate that investors can no longer rely on dividend income strategies that had worked in previous low-rate stable growth situations. Companies that increase dividends regularly and typically have higher average payout ratio, and the strong cash flow of dividend growers is positive. Allowable metrics to consider before investing in dividend growers are moderate payout ratio, strong free cash flow growth and consistent earnings. Ratios that always exceed 90% are red flags indicating possible unsustainability and higher risk of dividend cuts in the future.