Uh-Oh... a Safety Net Downgrade ⬇️

Declining cash flow is a troubling sign for Verizon's dividend yield. [Shield] AN OXFORD CLUB PUBLICATION [Wealthy Retirement]( [View in browser]( SPONSORED [Declare Your Financial Independence Now]( Most money managers, brokers and advisors are like a broken record... They'll tell you... "Regular investors underperform the markets." But here's what these Wall Street elites WON'T tell you... There's one simple but powerful way for small investors to outperform the market... proven by many studies. In fact, a CNN op-ed from a Columbia professor admits this strategy makes savvy investors "very, very rich." According to The New York Times bestselling financial author Alexander Green, you too can use this strategy to outperform the markets by a "huge margin." Alexander joins legendary host Bill O'Reilly to reveal the exact secret you can use to achieve financial independence... and prosper even through market downturns. Simply join their event right away: [America's Financial Independence Day](. [Click here MAL Day]( [SAFETY NET]( [This 6.7% Yield Isn't as Safe as It Used to Be]( [Marc Lichtenfeld, Chief Income Strategist, The Oxford Club]( [Marc Lichtenfeld]( Two years ago, I [analyzed]( Verizon's (NYSE: VZ) dividend safety and rated it an "A." It was very safe. But can we say the same today? Let's have a look. The most important metric that we look at here at Safety Net headquarters is free cash flow. While Verizon has lots of it, it has been generating less and less over the past few years. This year, free cash flow is expected to rise to $16.9 billion from last year's $14 billion, which was the lowest since 2017. But you can see that since 2020, the trend has been lower. [Chart: ]( The Safety Net model penalizes companies for declining cash flow. It's a troubling sign. Another important metric that we scrutinize is the payout ratio. This is the percentage of free cash flow that is paid out in dividends. I want to see the payout ratio be 75% or lower. In other words, I am not comfortable with companies paying out more than 75% of their free cash flow to shareholders. That's because if cash flow slips, like we're seeing with Verizon, it makes it tougher to afford the dividend. SPONSORED [Biden Just Signed Death Warrant On Your Freedom]( [Big Brother Watching]( If Biden's Executive Order 14067 comes to pass, a former advisor to the CIA and Pentagon is predicting legal government surveillance of all US citizens; total control over your bank accounts and purchases; and indefinite Democrat control past 2024. He says Covid was a trial run for how to control a population. Dems will use their "pandemic playbook" to silence any dissent. [Click here to see exactly what to do before it happens.]( Last year, Verizon's payout ratio was 77% - just above my 75% threshold. This year, because free cash flow is forecast to rise, the payout ratio is projected to be 66%, which is back within my comfort zone. Verizon has raised its dividend every year for the past 16 years. Management stated as recently as last week that dividend growth is its objective and it expects to increase the payout again this year. The company's yield is impressive at 6.7%, and if management does what it says, the yield will be even higher (based on today's price). So we have a company with an excellent track record, and if free cash flow comes in close to where Wall Street expects, it should make the dividend very affordable and safe. But until it does, we have to go with the numbers that have actually been reported, not what's expected. And the numbers from the past few years aren't stellar, which means the dividend is no longer as rock-solid as it was two years ago. I won't be surprised if next year at this time, Verizon's dividend safety rating has been upgraded. But until the 2023 numbers come in, the dividend isn't as safe as it once was. Dividend Safety Rating: C [Dividend Grade Guide]( If you have a stock whose dividend safety you'd like me to analyze, leave the ticker in the [comments]( section. Be sure to check out the Wealthy Retirement website to see whether I've written about the dividend safety of your favorite stock recently. Just click on the word "Search" in the upper right part of the page and type in the name of the company. Good investing, Marc [Leave a Comment]( [Explore the Wonders of Israel, Jordan and Egypt]( RECOMMENDED LINKS [Stock Legend Takes Down Biden Economy in Epic Video]( [Is It Time to Quit the Market?]( MORE FROM WEALTHY RETIREMENT [Image of a bull market vs. bear market concept]( [Let It Bleed and Earn 12% per Year]( [Image of gold and silver nuggets]( [Expect Gold and Silver to Shoot Higher]( [Image of the Freeport-McMoRan logo with copper]( [Freeport-McMoRan's Value Buoyed by Growing Copper Demand]( [Image of a recreational vehicle at a scenic lookout]( [Can Camping World Keep Paying an 11.6% Dividend?]( [Facebook]( [Facebook]( [Twitter]( [Twitter]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0ADeclining cash flow is a troubling sign for Verizon%27s dividend yield.%0D%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0ADeclining cash flow is a troubling sign for Verizon%27s dividend yield.%0D%0A%0D [Push Alert]( [Push Alert]( SPONSORED [Could Secret Tech Hidden in Ketchup Factory Make People RICH?]( Barron's says it's "going to be really, really big." J.P. Morgan writes that it'll "infiltrate every sector in some way in the coming years." BlackRock compares this tech to the internet in the early '90s and smartphones in the early 2000s, saying it will "very likely change people's daily lives." [Click here to discover the next big thing in tech.]( [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. [Privacy Policy]( | [Whitelist Wealthy Retirement]( | [Unsubscribe]( © 2023 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [1.800.589.3430](#) | International: [+1.443.353.4334](#) | Fax: [1.410.329.1923](#) [Oxfordclub.com]( Nothing published by The Oxford Club should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed personalized investment advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after publication before trading on a recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, LLC, 105 West Monument Street, Baltimore, MD 21201.