The Death of a Dividend

What's next for shareholders? [Shield] AN OXFORD CLUB PUBLICATION [Wealthy Retirement]( [View in browser]( 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!** [SAFETY NET]( [Not Much Good News for This Natural Gas Producer]( [Marc Lichtenfeld, Chief Income Strategist, The Oxford Club]( [Marc Lichtenfeld]( Here in the Safety Net column, we typically analyze the safety of a company's dividend. But today, we're doing something different. We're going to look at a company that has eliminated its dividend to see whether shareholders should have any hope of it being reinstated. Comstock Resources (NYSE: CRK) is an independent natural gas producer in Louisiana and Texas. In 2022, the company generated $630 million in free cash flow while paying out $51 million in dividends. Last year, free cash flow swung to -$408 million, but Comstock still paid nearly $140 million in dividends. As a result, the company announced in February that it was suspending its dividend. SPONSORED [Calling All Investors Who Are Sick of This Stock Market]( If you're fed up with losing money in stocks, [this is a way]( to collect predetermined returns of more than 100% in as little as two years. [Click here to see how.]( The outflow of cash should improve this year, but it's still expected to be well into the negative at -$159 million. [Chart: The Death of Comstock Resources' Dividend]( [View larger image]( Comstock paid a dividend in 2013 and 2014 but eliminated it when free cash flow dried up. The company didn't revive the dividend until 2022, when it was cash flow positive again. Then, when free cash flow slid back into the negative in 2023, management again took the painful but responsible action of getting rid of the dividend. I suspect that if Comstock generates positive free cash flow for more than a year, it will resume paying a dividend to shareholders. But it won't be a dividend that investors can rely on, because management has shown it will wipe it out if the company is not generating any cash. I wouldn't expect a dividend from Comstock for at least a year and a half - maybe more. Since the company does not pay a dividend, there is no safety rating. But if it did pay a dividend, its grade would be an F. [Dividend Grade Guide]( If you have a stock whose dividend safety you'd like us to analyze, click the button below to leave a comment. [Let Us Know Your Favorite Dividend Stocks!]( 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. [The Oxford Club's 2024 Private Wealth Seminar, October 7-8, 2024 at the Wequassett Resort and Golf Club in Cape Cod, Massachusetts. Details here.]( BUILD AND PROTECT YOUR WEALTH [Here are Three Steps You Need to Take to Protect and Grow Your Money When America Is Threatened With Mass Unemployment. Watch This Before AI Goes Supernova.]( [How to Trade Nvidia’s Upcoming Earnings Report]( [Alex Finally Reveals His Personal Investments! 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And - unfortunately - the pain isn't going to end anytime soon. Fortune magazine analysts are warning that a recession is coming for most developed nations in 2024. Sure, the market could bounce back tomorrow... but [Chief Income Strategist Marc Lichtenfeld isn't willing to risk it](. So if you can't afford to lose money right now, [you need an alternative](. [It's time to quit the stock market.]( [The Oxford Club]( You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. 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