![]() ![]() ![]() He also obtained his NASD Series 86 & 87 licenses (required for all sell-side analysts). His investment career started out at the trading desk of Carlin Equities in San Francisco, California, where he executed dozens of trades each day for his clients. Marc is Editor of VIP Trading Services Dividend Multiplier, Oxford Systems Trader and Lightning Trend Trader, and is the author of Get Rich With Dividends. He also contributes frequently to The Oxford Communiqué and Investment U. Marc is the Chief Income Strategist for The Oxford Club and Wealthy Retirement, as well as Founder and Senior Editor of The Oxford Income Letter. Stock Market Bargain Shopping - How To Get 100 Shares For Pennies On The Dollar Top 3 Tax-Free Investments - Protect Your Portfolio From Uncle Sam Boom, you’ll see all the recent articles that mention your stock. To see whether I have written about your favorite stock, click on “Search” at the top right part of the Wealthy Retirement homepage, type the company name in the box and hit enter. If Johnson can turn things around to the point where free cash flow is projected to be higher in 2023, then the stock’s dividend safety will get an upgrade.īut for now, Lumen’s history of dividend-slashing and its plummeting free cash flow mean that you cannot consider the 12% yield safe.īut before you do, please check to see whether I’ve written about your favorite stock recently. The combination of two dividend cuts and falling free cash flow does not give me confidence that the dividend is safe. Kate Johnson has not yet signaled her intention when it comes to the dividend, but it’s not hard to imagine her cutting the dividend if free cash flow continues to deteriorate while she implements new plans and perhaps hires new personnel. However, the company has cut the dividend twice in the past 10 years – once in 2013, when it dropped the dividend to $0.54 from $0.72, and once in 2018, when it slashed the dividend from $0.54 to the current $0.25. Anything below 75% is a confidence booster. This year, Lumen is projected to pay out just 47% of free cash flow to shareholders in dividends. Lumen’s payout ratio is low, which is why I don’t expect an immediate dividend cut. If the decline continues, it could put a lot of pressure on the company’s ability to pay the dividend. Safety Net never wants to see free cash flow falling. Free cash flow is forecast to drop from $3.6 billion to $2.2 billion. This year, Lumen is expected to record its lowest free cash flow total since 2017. ![]() Its current $0.25 per share quarterly dividend comes out to a plump 12.3% yield.īut can investors rely on that dividend quarter after quarter? It’s easy to see why a dividend investor would be attracted to telecommunications technology provider Lumen Technologies Inc. (NYSE: LUMN). ![]()
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