Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as corporate America's slew of dividend cuts and suspensions over the past few years has demonstrated, it's not enough simply to buy a high yield. You also need to make sure those payouts are sustainable.

Let's examine how Dominion Resources (NYSE: D) stacks up. In this series, we consider four critical factors investors should examine in every dividend stock. We'll then tie it all together to look at whether Dominion is a dividend dynamo or a disaster in the making.

1. Yield
First and foremost, dividend investors like a large forward yield. But if a yield gets too high, it may reflect investors' doubts about the payout's sustainability. If investors had confidence in the stock, they'd be buying it, driving up the share price and shrinking the yield.

Dominion yields 4.1%, quite a bit higher than the S&P 500's 2%.

2. Payout ratio
The payout ratio might be the most important metric for judging dividend sustainability. It compares the amount of money a company paid out in dividends last year to the earnings it generated. A ratio that's too high -- say, greater than 80% of earnings -- indicates that the company may be stretching to make payouts it can't afford, even when its dividend yield doesn't seem particularly high.

Dominion has a moderately high payout ratio of 80%.

3. Balance sheet
The best dividend payers have the financial fortitude to fund growth and respond to whatever the economy and competitors throw at them. The interest coverage ratio indicates whether a company is having trouble meeting its interest payments -- any ratio less than five is a warning sign. Meanwhile, the debt-to-equity ratio is a good measure of a company's total debt burden.

Dominion has a debt-to-equity ratio of 182% and an interest coverage rate of four times. That's a bit high, but it's not abnormal for stable and capital-intensive utilities.

4. Growth
A large dividend is nice; a large growing dividend is even better. To support a growing dividend, we also want to see earnings growth.

It's been a rocky five years, but all told, Dominion's earnings per share have grown at an average annual rate of 2%, while its dividend has grown at a 7% rate.

The Foolish bottom line
So, is Dominion a dividend dynamo? It could very well be. It has a high yield, a reasonable payout ratio, a manageable debt burden, and a bit of growth to boot. Dividend investors will want to keep an eye whether the company is able to increase its earnings growth -- as analysts expect -- to ensure that it'll be able to continue increasing those payouts in the future. If you're looking for some other great dividend stocks, I suggest you check out "Secure Your Future With 11 Rock-Solid Dividend Stocks," a special report from the Motley Fool about some serious dividend dynamos. I invite you to grab a free copy to discover everything you need to know about these 11 generous dividend payers -- simply click here.