Free Event: For investors who want cash flow

This mortgage REIT recently changed its name... but is its dividend safe? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

AN OXFORD CLUB PUBLICATION

View in browser SPONSORED The New King of Electric Vehicles You probably haven't heard about this revolutionary car. Or the little-known company behind it. Yet it could soon become the new king of the EV industry. >> See the details HERE << A Note From Chief Income Strategist Marc Lichtenfeld: I've recently discovered a way to 6X your money in just one month by harnessing tiny but potent "micro-bounces" in falling stocks. And right now, I'm holding a FREE training that I call Project 9. In the Project 9 training, I'll show you exactly how to use this "micro-bounce" chart pattern. The training is entirely free to attend. All you need to do is register to attend. I hope to see you there. SAFETY NET New Name... and Higher Risk of a Dividend Cut for This 9% Yielder Marc Lichtenfeld, Chief Income Strategist, The Oxford Club Nearly a year ago, I analyzed the dividend safety of mortgage real estate investment trust (REIT) New Residential Investment Corp. In September 2021, I said the company's dividend had a moderate risk of being cut due to the company's history of lowering the dividend and its declining net interest income (NII). As of Monday, the company changed its name to Rithm Capital (NYSE: RITM). It will now manage the business internally, rather than have outside managers take care of the portfolio. The dividend safety rating has been downgraded, but that has more to do with past performance than what is expected. This year, NII - the measure of cash flow we use for mortgage REITs - is expected to soar. For the full year, Wall Street forecasts NII to come in at $1.6 billion. That is the highest number in years. Mortgage REITs typically make more money when interest rates are higher, so it's no surprise that NII is projected to increase as rates come off historic lows. Rithm currently pays a $0.25 per share quarterly dividend, which comes out to a 9.3% yield. The company should have no problem covering the current dividend if its NII is near the $1.6 billion forecast. It could even raise the payout substantially, as it is expected to pay shareholders $476 million in 2022. SPONSORED It's a Bird, It's a Plane, NO WAIT - It's "The Last Great Value Stock" "The Last Great Value Stock" was discovered by our Head Fundamental Tactician. At under $2 per share, this could be the last bargain in the markets today! It wasn't until his debut that Superman became one of the most iconic superheroes in history. An announcement on August 4 could be this stock's debut. Get Details Here. The problem is the company's new name won't shake off the stink of the last few years. The company slashed its dividend by 90% in 2020 from $0.50 per share to $0.05. Even after several dividend increases, the current dividend is half of what it was two years ago. That tells us that when the going gets tough, management cuts the dividend. Last year's payout ratio was also too high at more than 100% of NII. With NII expected to spike this year, that's less of a problem, but it does show that management overextends itself from time to time. This year looks to be a good year, but it wouldn't surprise me if the company gets ahead of itself again and boosted the dividend to unsustainable levels as it has in the past. I don't expect a dividend cut in the immediate future. But the company has proven that it does not do a good job of managing the dividend. Investors should receive their expected dividend in the immediate future, but past that, there's a good chance Rithm Capital will have to cut again. Dividend Safety Rating: D If you have a stock whose dividend safety you'd like analyzed, leave the ticker symbol in the comments section. You can also check to see whether we've written about your favorite stock recently. Just click on the magnifying glass in the upper right corner of the Wealthy Retirement homepage and type the company's name in the box. Good investing, Marc Leave a Comment RECOMMENDED LINKS 5G Megastock Trades Under SECRET Name Yours Free! Top FIVE Dividend Stocks Right Now MORE FROM WEALTHY RETIREMENT What Being a Rock Singer Taught Me About Trading A Tremendous Contrarian Indicator Three Recession-Proof Stocks Is Ma Bell a Good Buy in This Market? Facebook Twitter Email Share Push Alert SPONSORED Join Marc Lichtenfeld's Easy Income Challenge... And discover a simple way to generate at least one income check every month! CLICK HERE 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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