Author: John Oravec, Wealthy Retirement

In short, the company’s dwindling free cash flow spells trouble for its dividend.

The company has increased its dividend payout in each of the past 28 years. That sort of consistency gives it an automatic head start, but as you know, that’s not nearly enough. When we look at its free cash flow for 2023 and its expected free cash flow in 2024, we start to see some red flags.

The company’s cash flow growth is strong and its payout ratio is comfortable.