Seven cuts in 10 years is not a good sign... ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

AN OXFORD CLUB PUBLICATION

View in browser SPONSORED Five Dividend Stocks to Buy Now (FREE INSIDE) Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... Completely free of charge! Seriously, no credit card required. Inside, you'll get the names and ticker symbols of his TOP FIVE dividend stocks right now, including... An "A"-rated, ultra-safe dividend stock with a huge 8% yield Three of Marc's favorite "Extreme Dividend" stocks, which could supercharge your income And finally, his No. 1 dividend stock for a LIFETIME of income. Click here before the download link expires. SAFETY NET Can This 6.7% Yielder Keep the Magic Alive? Marc Lichtenfeld, Chief Income Strategist, The Oxford Club Magic Software Enterprises (Nasdaq: MGIC) is the rare software company that has a big yield. Most tech companies don't pay dividends at all - and of the ones that do, very few have yields above 3%. Magic Software's current $0.327 per share semiannual dividend comes out to a yield of 6.7%. But can the Israeli company keep it up? Over the last four quarters for which we have data (the company has not yet released its fourth quarter results), Magic Software generated $80 million in free cash flow. It paid $30.8 million in dividends over that span for a nice low payout ratio of 39%. That means the company is paying out just $0.39 in dividends for every dollar in free cash flow, so it can comfortably afford its dividend. (Remember, I use free cash flow rather than earnings to calculate a company's payout ratio because it's easier for management to manipulate earnings numbers.) Magic Software is a small cap stock with a market cap under $500 million. As a result, only two sell-side analysts cover the stock, and they have not published free cash flow estimates for 2024. So we'll have to make our own assumptions. Earnings are projected to be flat this year, while revenue is forecast to decline by 10%. Since earnings are expected to be flat and management has not provided any guidance so far, we'll assume that free cash flow will also be flat. SPONSORED Better Than Oil Stocks The best way to profit from energy is NOT a stock... Rather, it's this little-known alternative investment. CLICK HERE TO FIND OUT MORE The company has reduced its dividend a few times in recent years. In 2022, the dividend dipped from $0.234 to $0.216 per share, and in 2020, it was nearly cut in half from $0.156 to $0.08 per share. View larger image   All in all, there have been seven cuts in the past 10 years, with the others coming in 2014, 2015, 2016 and 2019. So while the overall trend has been higher, there have been periods when the dividend was reduced for a short time. The company can easily afford its dividend based on the trailing 12 months numbers, but it has shown a willingness to cut the dividend on a fairly regular basis. With that in mind, how would you rate Magic Software's dividend safety? Would you trust it to keep paying you a reliable dividend, or are you worried it might slash its dividend again? Here's a reminder of the Safety Net grading scale. Click the button below to share your thoughts, and then scroll up to reveal my grade. SHARE YOUR GRADE HERE! RECOMMENDED LINKS Wall Street PROJECTS $30 Energy Stock Will Rise to $280 in 18 Months! Are You a Zero-Sum Thinker? See How to Access the Money Tool Metric Typically Reserved for World's Richest ($10M+ Net Worth) Are the Bulls Toast? MORE FROM WEALTHY RETIREMENT The Best Value Meter Picks of 2023 Safety Net Kept You Safe From Dividend Cuts in 2023 How to Fight America's Loneliness Epidemic Marc's Bold Market Predictions for 2024 Facebook LinkedIn Email Share Push Alert SPONSORED The Ultimate Passive Income Investment It's not a stock, bond or private company... But this little-known alternative investment could hand you BIG MONTHLY INCOME. CLICK HERE TO FIND OUT WHAT IT IS 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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