2020 was a tough year for Apollo. Net interest income (the measure of cash flow for mortgage REITs) declined to $278.7 million from $334.5 million in 2019. 2021, however, was much better. Only a little under 5 million households did not make their rent or mortgage payments in March 2021 - the lowest number since the pandemic began. And just 4.9% of homeowners missed their monthly mortgage payment in March of last year thanks to an improving economy and labor market. Apollo recorded $284.5 million in net interest income in 2021, which boosted the company in our book. It's not all smooth sailing, though. Net interest income is expected to come in at $262.6 million in 2022, 7.7% less than where it was last year. And the upcoming dip makes sense... With interest rates rising from historic lows, the new debt Apollo uses to leverage its assets will be more expensive to take on, meaning the difference between the return on its assets and the cost of its debt is getting concerningly slim. That's not a good spot for this mortgage REIT to find itself in. Apollo is predicted to pay out $216.6 million in 2022 - the same amount it paid in 2021. Its income still covers the dividend, but the payout ratio is getting higher. While we can give the company some credit for bettering its numbers in 2021, 2022 doesn't seem so promising. Apollo cut its dividend twice in 2020... and that's when it was pulling in $278.7 million in net interest income. Since Apollo is estimated to make even less than that this year, the $0.35 dividend is in serious danger of getting cut - so tread lightly. Dividend Safety Rating: D If you have a stock whose dividend safety you'd like analyzed, leave the ticker symbol 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 in the company name in the box. Good investing, Brittan | 
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