| The problem is the company's new name won't shake off the stink of the last few years. The company slashed its dividend by 90% in 2020 from $0.50 per share to $0.05. Even after several dividend increases, the current dividend is half of what it was two years ago. That tells us that when the going gets tough, management cuts the dividend. Last year's payout ratio was also too high at more than 100% of NII. With NII expected to spike this year, that's less of a problem, but it does show that management overextends itself from time to time. This year looks to be a good year, but it wouldn't surprise me if the company gets ahead of itself again and boosted the dividend to unsustainable levels as it has in the past. I don't expect a dividend cut in the immediate future. But the company has proven that it does not do a good job of managing the dividend. Investors should receive their expected dividend in the immediate future, but past that, there's a good chance Rithm Capital will have to cut again. 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 the company's name in the box. Good investing, Marc | 
No comments:
Post a Comment