| In fiscal 2024, Kohl's paid shareholders $222 million in dividends. That came out to a 122% payout ratio, which is way too high. In other words, it paid shareholders $1.22 for every $1 in free cash flow. That is not sustainable. However, because free cash flow is forecast to rise to $393 million this year, the payout ratio is projected to drop to a more comfortable 61%, as the total dividend payout is expected to rise only slightly to $238 million. As for Kohl's dividend history, it is like former CEO Ashley Buchanan's judgment. Not good. Kohl's slashed its dividend from $0.50 per share to $0.125 earlier this year. During the pandemic, it eliminated the payout entirely for three quarters. When it brought it back, the dividend was 65% lower than before it was suspended. So Kohl's dividend safety rating has a lot of things going against it: The company's free cash flow fell in the most recent fiscal year, its payout ratio is sky-high, and it is a frequent dividend cutter. Kohl's is facing tariffs and a new CEO taking over after a scandal. With all the marks against its record, its dividend cannot be considered safe. Dividend Safety Rating: F I appreciate all the Safety Net requests many of you have left on the website recently. Please keep them coming. Since you've given me so many options to choose from, I'm letting you vote on which stock I analyze next week. After you vote, feel free to leave a comment online if you have another stock you'd like me to add to my list. The polls are officially open! Vote by clicking one of the buttons below. | 
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