Safest Dividend Stocks In The Market
There is a downside to dividend stock investing that doesn’t get highlighted very often. A stock with a dividend may not always be able to pay that dividend. The ability for a company to return cold hard cash to shareholders in any sustainable fashion is dependent on the company’s ability to generate enough free cash flow to both grow its business organically or through acquisition, and pay a dividend.
Yet, not all dividends are sustainable. During the financial crisis, virtually every hotel REIT suspended its common dividend, and some even suspended preferred dividends. They had to hoard as much cash as they could because business was destroyed.
