I will take these factors into consideration individually, before applying them to any models. A dividend is a share of a corporation's profit that is paid to the holder of stock. Generally, when a company begins to pay a dividend, it continues to do so. Increasing dividends are generally signs of increasing cash flows. A company can be doing extremely well according to modern accounting principles and be in extreme danger of going out of business.
Cash flows are the amount of usable income a firm takes in or spends during a given period of time.
Companies seek not only positive net cash flows, but also increasing net cash flows. Generally, the greater the risk of an investment, the greater the return on that investment must be to tempt an investor. The risk level, is determined by taking long term historical data on the return of the market, relative to the historical data of the stock, and determining the correlation. This will yield what is called the beta of the stock. This shows that generally risk increases over the time of the investment.