Is This Company's Dividend Bulletproof?

These investors are staring down the barrel of a dividend cut... [Shield] AN OXFORD CLUB PUBLICATION [Wealthy Retirement]( [View in browser]( SPONSORED ["... And That's How America Fell."]( [Fallen Statue]( History books may soon read "and that's how America fell"... After China completes their [twisted plot to end America and start a new Global World Order](. Find out the #1 move that one bestselling global financial expert is making to protect his hard-earned assets. [Consider this emergency plan here]( before it's too late... [Yes, Show Me the Emergency Plan]( [SAFETY NET]( [Is This Company's Dividend Bulletproof?]( [Marc Lichtenfeld, Chief Income Strategist, The Oxford Club]( [Marc Lichtenfeld]( Owners of Sturm, Ruger & Co. (NYSE: RGR) may feel safer owning one of the company's guns than the stock because investors are staring down the barrel of a dividend cut. The gunmaker's revenue dropped by 18% in 2022 due to discounts and rebates by competitors and an increase in used gun sales. As a result of lower sales and profit, free cash flow fell off a cliff to $49.5 million last year, down from $143.6 million in 2021. [Chart: Sturm, Ruger & Co.'s Falling Free Cash Flow]( In 2022, Sturm, Ruger & Co. paid shareholders 86% of free cash flow. This year, I estimate the payout ratio will rise to nearly 95%. That's redlining the payout ratio. I want to see the payout ratio at 75% or lower to ensure that a company doesn't have to cut its dividend if free cash flow slips. SPONSORED [Bestselling Financial Author Warns: How to Protect Your Money From China's Evil Plot to Destroy America]( [Ambassadors at a Table]( The man CNBC calls "the Market Maven," who has consulted with several of the world's billionaires and political leaders... Just issued a rare warning urging investors to immediately protect their money... Before China can fully execute [their sinister plot to destroy America](. Smart investors should [watch this video NOW]( to receive all the important details on this looming crisis. [SEE THE URGENT DETAILS]( It's important to note that Sturm, Ruger & Co. has a variable dividend. It aims to pay out 40% of net income in dividends, and that's why there have been so many dividend raises and cuts over the past 10 years. [Chart: Sturm, Ruger & Co.'s Variable Dividend]( The most recently declared dividend is $0.42 per share, which is up a penny from last quarter's but down 56% from the dividend a year ago. That said, the company paid a $5 per share special dividend in the fourth quarter of 2022. It did the same in August 2020. Most financial websites will show Sturm, Ruger & Co.'s dividend yield as 4% or 3.3% depending on whether the site used the $0.42 per share dividend that was declared last week. If you annualize the $0.42, it comes out to only a 2.8% yield. We know that the company's dividend is variable, so it has a very strong chance of being reduced in any given quarter. And considering that revenue and free cash flow are expected to decline in 2023, I suspect the dividend is in serious jeopardy of being lowered again in the next 12 months or so. Dividend Safety Rating: F [Dividend Grade Guide]( If you have a stock whose dividend safety you'd like me to analyze, leave the ticker symbol in the [comments]( section. Be sure to check whether I've written about your favorite stock recently. Click on the word "Search" in the top right part of the website homepage, type in the company name and hit enter. Good investing, Marc [Leave a Comment]( [Explore the Wonders of Israel, Jordan and Egypt]( RECOMMENDED LINKS [Former CBOE trading legend showed members 246% total gains while the S&P was DOWN 20% during the COVID Crash. Now he's hosting a FREE CLASS revealing the answer to big wins. 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While Forbes says this company could be the next Apple or Microsoft, Barron's says this could be the "next big thing." Bill Gates has already invested millions into this company. So has tech investor Cathie Wood. If you're looking for massive gains... [this could well be the biggest opportunity of your lifetime](. [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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