Will This 10% Yield Go Up in Smoke?

I answered that question in this week's Safety Net. [Shield] AN OXFORD CLUB PUBLICATION [Wealthy Retirement]( [View in browser]( SPONSORED [DPL Logo]( - Look Over Multimillionaire Trader Nate Bear's Shoulder During His "Millionaire Trading Blitz" - 1 Full Week of Trading ([Discover Powerful New Strategies That Work!]( - It's All 100% FREE! [CLICK HERE TO RESERVE YOUR FREE SPOT NOW (WHILE THERE'S STILL SPACE!)]( [SAFETY NET]( [Will This 10% Yield Go Up in Smoke?]( [Marc Lichtenfeld, Chief Income Strategist, The Oxford Club]( [Marc Lichtenfeld]( As the saying goes, where there's smoke, there's fire. But in the case of British American Tobacco (NYSE: BTI), where there's smoke, there's a giant 10% dividend yield. Can the company sustain it, or will it burn through its cash like the embers on the end of a forgotten cigarette? In 2023, British American Tobacco posted its largest free cash flow figure in at least a decade. The company generated $10.8 billion in free cash flow last year and paid out $6.3 billion in dividends for a payout ratio of 58%. SPONSORED [One Ticker Payout]( ["I only buy WINNERS..."]( His "[ONE WINNING STOCK]( strategy could have led to top gains of 141%, 333% and even a rarely seen 2,614% in under 11 days! This legendary trader (he turned $37K into $2.7 MILLION in just four years) reveals the shocking secret to focusing ONLY on WINNERS... [Click Here ASAP (His Next One Ticker Payout Goes Live Monday, April 22!)]( This year, free cash flow is forecast to decline to $10.3 billion, and the total dividend payout is projected to remain $6.3 billion. That would push the payout ratio up to 61%, which is still well within my comfort zone. For most companies, I like to see payout ratios of 75% or lower because that ensures they will still be able to afford their dividends even if free cash flow slips. [Chart: Free Cash Flow Easily Covers the Dividend]( [View larger image]( British American Tobacco has boosted its dividend every year since 2007, which is a great sign for its dividend safety rating. But there's something you need to be aware of with this stock that could affect your dividend payments... [Go Here to Finish Reading and Get My Grade]( [2024 Private Wealth Seminar at the Wequassett Resort & Golf Club in Harwich, Massachusetts on October 7-8, 2024]( BUILD AND PROTECT YOUR WEALTH [Two Recent Ultra-Cheap (Under $5) Penny Options Made 131% and 115% in Under 49 Days. Discover How You Can Get the Next Recommendation Here.]( [The Legend Who Discovered How to Get Rich... 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