4 Fastest Growing Blue Chip Stocks

It could struggle to afford its dividend... ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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View in browser SPONSORED 92-Year-Old Multimillionaire's Strange Deathbed Regret 92-year-old newfound multimillionaire Marvin turned $635K into $3.6M in 9 years. It's a rare example of spectacular financial success, especially at that stage in life. His only regret... he won't live long enough to do it again. YOU still can use his moneymaking secret. See how, by clicking here. SAFETY NET Will This 7.9% Yielder Live Long and Prosper? John Oravec, Research Analyst, The Oxford Club Spok Holdings (Nasdaq: SPOK) - pronounced "spoke," not "Spock," as I was hoping - is a healthcare software company that specializes in streamlining secure communication processes within hospitals. Last year Spok announced a 150% increase in its dividend, which has a healthy 7.88% yield as I write. And the company plans to focus on increasing free cash flow, which would be a boon for all of its investors. So everything seems to be looking up... right? Well, once we start to peel back the layers a bit, we can see that there's a lot more to the story. The first red flag is that despite a big jump in 2020, the company's free cash flow fell 61% from 2019 to 2022. That included a 25% drop from 2021 to 2022. Ouch! Falling free cash flow is never a good sign for dividend investors. That's strikes one and two for Spok's dividend safety rating. However, there was a pretty good reason for that steep decline... Spok's business was hurt significantly by the COVID-19 pandemic. That's why the company took action in February 2022, releasing a new strategic business plan. As part of Spok's renewed commitment to cutting costs and maximizing free cash flow, it discontinued its Spok Go communication platform, which had seen limited demand as a result of the pandemic. The company also decided to increase its dividend payout by 150%. While that all may sound good, the company's free cash flow is still nowhere near a level that would allow it to safely maintain its dividend. Our rule of thumb is that we like a stock's dividend payout ratio to be less than 75%. In 2022, Spok had a 926% payout ratio - over 12 times higher than our benchmark. SPONSORED ***UPGRADED: Our "Last Great Value Stock" Trading "for Just Pennies" A new blockbuster report by The Motley Fool featured what we've been calling "The Last Great Value Stock." Fool's Christopher Ruane wrote, "Shares look quite cheap at the moment. After all, they're in penny stock territory... they offer good value - and I have been buying them for my portfolio because of that." InvestingCube says, "Share price is a bargain." And Zacks Investment Research just upgraded the stock. So what is this cheap, bargain-priced, upgraded stock? >>> Get the urgent details here before the price surges higher. Analysts are projecting free cash flow to grow significantly and hit $23.3 million in 2023. But even if they're correct, that still wouldn't be enough to cover Spok's expected dividend payout of $25 million. Paying out more cash to shareholders than the company is bringing in the door is simply not sustainable over the long term. Spok would need to generate $33.3 million in free cash flow to hit our benchmark of a 75% payout ratio. That's $10 million above the expected figure. Now, Spok has a couple of things going for it. It has never cut its dividend, and it occasionally issues a special dividend to its shareholders as a gesture of goodwill. But that doesn't change the company's free cash flow situation. It's possible that Spok will eventually revitalize its business and recapture the success of its pre-2016 glory days. But until we see some actual results, the company is way too volatile for its dividend to be considered safe. Dividend Safety Rating: F If you have a stock whose dividend safety you'd like us to analyze, leave the ticker symbol in the comments section. 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. Leave a Comment RECOMMENDED LINKS Get Marc's Top 5 Dividend Stocks (FREE PICKS) 100% Dividend Yields?! Details HERE MORE FROM WEALTHY RETIREMENT Why Bonds Belong in Your Portfolio Become a "Maestro" of Technical Analysis Fairfax Financial: Should You Follow This Insider Trade? Is a 53-Year Streak of Dividend Growth Ending for Illinois Tool Works? Facebook LinkedIn Email Share Push Alert SPONSORED The Most Important Discovery of My Career Last year, our research team performed an in-depth audit on all of my winning trade recommendations across all of my services over 12 years. The goal was to find a common theme among what worked best. In total, there were 442 winners - roughly 36 per year. And of those 442 winners, nearly 100 of them were triple-digit winners. That means I've already given my readers nearly 100 chances to double their money - or more - over the past 12 years. And I expect the $7 energy company I'm recommending today to be added to that list very soon. Click here for details 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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