Send This 8% Yield Back to the Kitchen

This classic restaurant's dividend could be in trouble... [Shield] AN OXFORD CLUB PUBLICATION [Wealthy Retirement]( [View in browser]( SPONSORED [RESERVE YOUR FREE SEAT at the Bitcoin Mega Halving Event with Robert Ross and Shah Gilani]( In the next few days, bitcoin will halve again. After 2016's halving, bitcoin ran from $663 to a peak of $19,118 in 18 months. After 2020's halving, it jumped from $8,500 to a peak over $64,000 in a year... and sent 68 altcoins soaring over 1,000%! [Come see why Robert says this halving could produce the biggest gains yet.]( Editor's Note: Before you read today's Safety Net, check this out... As you know, we don't spend much time discussing cryptocurrencies here at Wealthy Retirement. They just aren't our cup of tea. But we pride ourselves on leaving no stone unturned in our quest to help you build the best possible retirement... so I wanted to make sure you're aware of an [upcoming crypto event]( hosted by my colleague Robert Ross over at Manward Press. Robert is one of the leading voices in the world of crypto, and at a free training tomorrow at 2 p.m. ET, he'll be discussing a fast-approaching catalyst that [could trigger an 18-month crypto frenzy!]( And just in case anyone out there thinks they've missed the boat or they're too old to start investing in crypto, Robert told readers just yesterday that crypto "can benefit investors at any stage of life... [especially those at or near retirement]( [Go here to sign up for Robert's FREE training!]( (Don't worry... If you can't make it, sign up anyway, and they'll send you a recording after the event.) - James Ogletree, Managing Editor [SAFETY NET]( [Send This 8% Yield Back to the Kitchen]( [Marc Lichtenfeld, Chief Income Strategist, The Oxford Club]( [Marc Lichtenfeld]( When my son was in elementary school, he was on a robotics team that competed around the state. One of his favorite traditions with the team was stopping at Cracker Barrel (Nasdaq: CBRL) on the way home from tournaments. It's too bad the Poinciana Tazbots aren't still together, because Cracker Barrel could use the extra business to help fund its 8% dividend yield. Is the company serving up enough Chicken n' Dumplins to continue to pay shareholders that strong of a dividend? Free cash flow has been heading the wrong way since the initial rebound after the pandemic. Even though revenue has increased every year since 2021, gross margins have slipped and operating margin has dropped dramatically, which has squeezed profits and - as a result - cash flow. [Chart: Cracker Barrel Starting to Crack?]( [View larger image]( In fiscal 2023, which ended in July, Cracker Barrel's free cash flow totaled $123.5 million. Meanwhile, it paid out $116.1 million in dividends for a too-high payout ratio of 94%. In other words, for every dollar in cash flow that the company generated, it paid shareholders $0.94. Most of the time, I like to see a payout ratio of below 75%. That way, if free cash flow falls, the company can still afford its dividend. That's exactly what concerns me here. SPONSORED [Yours Free! Top FIVE Dividend Stocks Right Now]( Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... completely free of charge! You'll discover... - 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, Marc's No. 1 dividend stock for a LIFETIME of income. [Click here to get the names and ticker symbols now](... before the download link expires. **NO CREDIT CARD REQUIRED!** In 2024, Cracker Barrel's free cash flow is forecast to drop to $114.5 million. In the first two quarters of fiscal 2024, it has paid $58.3 million in dividends. If it pays the same amount over the next two quarters, its total amount paid in dividends will be greater than its free cash flow, which is something we never want to see. Up until the pandemic, Cracker Barrel had done a good job of consistently raising the dividend. Starting in 2003, its total payout grew every year for nearly two decades, and the company also occasionally paid some big special dividends. But when the pandemic hit, Cracker Barrel suspended its dividend for a year, beginning in the summer of 2020. When it resumed paying a dividend in August 2021, it lowered it from $1.30 per share to just $1. In January 2022, the quarterly dividend was raised back to $1.30 per share, which is where it sits today. With cash flow declining and the total dividend payout expected to exceed free cash flow, we have to consider Cracker Barrel's dividend far less reliable than its meatloaf. Dividend Safety Rating: D [Dividend Grade Guide]( If you have a stock whose dividend safety you'd like us to analyze, leave the ticker symbol in the comments section below. You can also take a look to see whether we've written about your favorite stock recently. Just click on the word "Search" at the top right part of the [Wealthy Retirement homepage]( type in the company name and hit "Enter." Also, keep in mind that Safety Net can analyze only individual stocks, not exchange-traded funds, mutual funds or closed-end funds. [Leave a Comment]( [2024 Private Wealth Seminar at the Wequassett Resort & Golf Club in Harwich, Massachusetts on October 7-8, 2024]( BUILD AND PROTECT YOUR WEALTH [Major Crypto Bull Market Expected to Start on April 22, 2024]( [The Modernization of Currency and Investing]( [Discover the $12 Energy Company Paying a Nearly DOUBLE-DIGIT Yield That Just STUNNED Investors With Plans to Increase It Much Higher]( [A Sure-Fire Strategy for the Ages]( MORE FROM WEALTHY RETIREMENT [Article]( [3 Easy Ways to Save Money on Healthcare]( [Article]( [Investing in a Worthy Cause]( [Article]( [Does Ford Have Some Gas Left in the Tank?]( [Article]( [3M's Dividend Might Not Be as Safe as It Seems]( [Facebook]( [Facebook]( [LinkedIn logo]( [LinkedIn]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AEven all the Chicken n%27 Dumplins in the world might not be enough to save this dividend...%0D%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AEven all the Chicken n%27 Dumplins in the world might not be enough to save this dividend...%0D%0A%0D [Push Alert]( [Push Alert]( SPONSORED [Unknown Kansas Welder Ends Up on Forbes Richest List??]( [Welder]( He Didn't Start a Business... 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