Is This Mysterious 8.6% Yielder's Dividend Safe?

This high-tech dividend newcomer ought to pique your curiosity...‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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View in browser SPONSORED [FREE E-Book] Top 5G Analyst Makes SHOCKING Announcement David Fessler, Engineering Strategist, says this $8 stock is the only 5G stock you need to own. And he's giving away a FREE e-book to anyone who hears him out. Watch this short video to claim your free e-book now... SAFETY NET An 8.6% Yielder You've Never Heard Of Marc Lichtenfeld, Chief Income Strategist, The Oxford Club In the Safety Net column, I usually cover popular stocks that have big yields. Lots of people are invested and/or interested in these household names, so grading these stocks is a sure bet to make readers happy. However, once in a while, I like to introduce you to a stock you've probably never heard of that nevertheless pays a strong dividend. After all, today's unknown could be tomorrow's Perpetual Dividend Raiser. With that in mind, let's take a look at Autoscope Technologies (Nasdaq: AATC). Its main business is technology that collects and analyzes traffic data to improve travel efficiency and driver safety. The reason you've never heard of Autoscope Technologies is it has a tiny $32 million market cap and trades just 17,000 or so shares a day. The company pays a $0.12 per share quarterly dividend, which comes out to an 8.6% yield. It only began paying a dividend last May. Over the past 12 months, free cash flow was $2.3 million. The three dividends paid so far totaled $1.29 million. If we annualize that figure, it comes out to $1.7 million for a payout ratio of 74% - just under my 75% limit. Over the past 12 months, free cash flow was flat with 2020's total but up significantly from 2019's. No analysts cover the stock, so there are no cash flow estimates. Since cash flow has been flat over the past four quarters, we'll assume the same will continue going forward. If Autoscope Technologies increases its cash flow while keeping the dividend the same, we could see an upgrade to the dividend's safety rating. The company has $8.5 million in cash and $115,000 in debt, so that's not a concern. SPONSORED So to summarize, we don't yet have a clear picture of Autoscope Technologies' financial performance. There are no estimates, and management has not offered guidance. Should free cash flow dip or the payout ratio go above my comfort limit of 75%, I'll get concerned. If the situation stays the same, Autoscope Technologies should be able to continue to pay its current 8.6% yield. At this point, you can't consider the dividend safe. There just isn't enough information. But I suspect the dividend isn't in imminent danger of a cut. We'll have to see what the financials for the next few quarters look like. Dividend Safety Rating: C If you have a stock whose dividend safety you'd like analyzed, leave the ticker in the comments section. You can also check to see whether we've written about your favorite stock recently. Just click on the magnifying glass in the upper right corner of the Wealthy Retirement homepage and type the company name in the box. Good investing, Marc Leave a Comment TYPE A COMPANY'S NAME BELOW MORE FROM WEALTHY RETIREMENT Is Now the Time to Invest in Russian Stocks? Fat Pitches Are Coming in the Bond Market The Smartest Crypto Investment Get Safe, Steady Streams of Income With Bonds Facebook Twitter Email Share Push Alert SPONSORED HUGE Overnight Gain on a Slack "Win-Both-Ways Trade" We just hit a big, fast moneymaker on Slack Technologies. Regular investors lost 17% in a flash... But my readers walked away with fists of cash. Grant V. said he made a "net 130% in three minutes!" And newbie Steve C. said, "$1,200 profit [31% gain] on my second day of trading." See how it's done here. You are receiving this email because you subscribed to Wealthy Retirement. 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