Wednesday, November 9, 2022

What Sliding Cash Flow Means for This Well-Known Dividend

Shield

AN OXFORD CLUB PUBLICATION

Wealthy Retirement

View in browser

SPONSORED

#1 Stock for Energy Crisis (Buy Now for Just $8)

SFT Infinite Energy
 

As the world suffers an oil shock... And gas prices rip higher...

One tiny company could have the answer to the global energy crisis. It's using AI to crack open the largest untapped energy source on the planet... 5X larger than the biggest oil field on Earth.

Act fast, this $8 stock could be moments away from appreciating considerably.

What Sliding Cash Flow Means for This Well-Known Dividend

Marc Lichtenfeld, Chief Income Strategist, The Oxford Club

Marc Lichtenfeld

Shares of Ford (NYSE: F) are down 38% this year as the market considers the deteriorating fundamentals at the car company.

In October, U.S. sales plummeted 10%.

But the real problem is free cash flow. This year, free cash flow is expected to be half of what it was in 2020. And next year, it'll be half of this year's. In fact, the 2023 figure is projected to be the worst in a decade.

For those keeping score at home, that's bad. Very bad.

Chart: Ford's Free Cash Flow Has Made a Roundtrip
 

The good news is that Ford can pay for its dividend.

This year, Ford is forecast to pay $1.9 billion in dividends, well below the $7.7 billion in free cash flow expected for this year and even the $3.7 billion anticipated for next year.

But Ford slammed the brakes on its dividend in 2020. After paying a dividend every quarter since 2012, management eliminated the dividend for six quarters starting in 2020.

That history of abolishing the dividend means management won't hesitate to do it again if times get tough.

SPONSORED

Claim Your FREE Ultimate Dividend Package
(Seriously, put your wallet away!)

Ultimate Dividend Package
 

CLICK HERE

Combine a potentially trigger-happy management with rapidly depleting free cash flow, and you have a dividend that could very well be facing a cut in the next year or so.

The company's finances and declining cash flow indicate the dividend is not safe at all.

Dividend Safety Rating: D

Dividend Grade Guide
 

Let me know if you have a stock whose dividend safety you'd like me to cover next by typing the ticker in the comments section.

But before you do, please check to see whether I've written about your favorite stock recently. There's a good chance I have.

To see whether I have written about your favorite stock, click on "Search" at the top right part of the Wealthy Retirement homepage, type the company name in the box and hit enter. Boom, you'll see all the recent articles that mention your stock.

Good investing,

Marc

Leave a Comment

This Company Just Solved Europe's Energy Crisis... Wall Street Now Projects a Near 10-Fold Rise in 18 Months.

Beware: Recession Threat Is "Uncomfortably High." If You Feel Like You Just Can't Take This Market Anymore, Check Out This Presentation...

SPONSORED

Recession? Depression? You Haven't Seen Anything Yet!

Bad news... the worst of this mess could still be to come.

That's because I expect horrific news to erupt from a secretive closed-door meeting on December 14.

What comes out of it could shake the very economic foundation of this nation.

If you think the "Nixon Gold Shock" was bad... you've got to see this.

Click here for a video that will scare you into action.

No comments:

Post a Comment

Hard to believe, but it’s real

And the result was mind-blowing. ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ...