Safety Net: Time to Start Worrying About This 8% Yield?

This could be the start of a concerning trend... [Shield] AN OXFORD CLUB PUBLICATION [Wealthy Retirement]( [View in browser]( SPONSORED [Five Dividend Stocks to Buy Now (FREE INSIDE)]( Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... Completely free of charge! Seriously, no credit card required. Inside, you'll get the names and ticker symbols of his TOP FIVE dividend stocks right now, including... - An "A"-rated, ultra-safe dividend stock with a huge 8% yield - Three of Marc's favorite "Extreme Dividend" stocks, which could supercharge your income - And finally, his No. 1 dividend stock for a LIFETIME of income. [Click here before the download link expires.]( [SAFETY NET]( [Time to Start Worrying About This 8% Yield?]( [Marc Lichtenfeld, Chief Income Strategist, The Oxford Club]( [Marc Lichtenfeld]( OneMain Holdings (NYSE: OMF) is one of the most commonly requested stocks for Safety Net. I [evaluated the stock's dividend safety in 2022]( giving it a grade of "B," and then [covered it again last September]( upgrading it to an "A." For much of last year, it paid a double-digit yield, though a rise in the stock price late in 2023 brought the yield down to 8%. (The dividend itself stayed intact, but the higher stock price caused the yield to shrink.) OneMain lends money to subprime borrowers, a category that currently includes 100 million Americans. The company operates in 44 states and has been around since 1912. Though OneMain is 112 years old, its dividend history only goes back to 2019. But it has raised its dividend every year since then, and it paid special dividends in 2019, 2020 and 2021. It currently pays a $1 per share quarterly dividend. Should investors expect to continue to receive at least $1 each quarter? Because OneMain is a lender, we look at net interest income, or NII, to evaluate how much cash the company is bringing in. NII has risen in each of the past five years. But this year, it is expected to fall slightly. [Chart: Be Wary of OneMain's Falling NII]( [View larger image]( SPONSORED [Legendary Investor Paul Tudor Jones Predicts "Violent Death" for Putin]( [Putin Stressed]( Source: [Wikimedia Commons]( Few people know this, but Putin just made the single biggest mistake of his life. It's not invading Ukraine... but it could have a profound effect on world markets. A market expert breaks down the opportunity [here](. In 2024, NII is forecast to drop from $3.6 billion to $3.3 billion - its lowest level since it totaled $3.2 billion in 2019. A decline in cash flow is an automatic ding against a company's dividend safety rating, as it can sometimes be a warning of a change in the company's business. Fortunately for shareholders, OneMain paid out just $480 million in dividends last year for a very sustainable payout ratio of just 13.5%. This year, Wall Street estimates that the company's total dividends paid will inch up to $481 million, which would cause the payout ratio to crawl to 14.4%. That's still extremely low. OneMain should have absolutely no problem paying its dividend, and there is plenty of room for another raise or special dividend. I imagine some of you will be spooked by the potential drop in cash flow, while others won't mind it too much due to the low payout ratio. As always, I'd love to hear your thoughts. Which side do you land on? Click the button below to let me know your grade, and then scroll up to reveal my rating. [Go Here to Share Your Thoughts!]( [2024 Private Wealth Seminar at the Wequassett Resort & Golf Club in Harwich, Massachusetts on October 7-8, 2024]( BUILD AND PROTECT YOUR WEALTH [Get Marc's Top 5 Dividend Stocks (FREE PICKS)]( [The Power of Momentum Stocks]( [One Potentially Explosive Stock That Alexander Green Just Discovered Has Seen Five-Year 2,000% Revenue Growth, Enjoys 70% Gross Margins and Sports a Debt-Free Balance Sheet, yet Still Trades Under $10. He's Calling It the "Next Great American Super Stock." 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