The Death of a Dividend

What's next for shareholders? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

AN OXFORD CLUB PUBLICATION

View in browser SPONSORED Famous Trader Puts AI To The Test (You're Not Going To Believe This) Multimillionaire Trader just put a powerful new AI Trading research tool through the ringer and recorded it... The results? Well, you gotta see them for yourself to believe. See what he uncovered that will change the way he trades (forever). SEE THE RESULTS HERE SAFETY NET Not Much Good News for This Natural Gas Producer Marc Lichtenfeld, Chief Income Strategist, The Oxford Club Here in the Safety Net column, we typically analyze the safety of a company's dividend. But today, we're doing something different. We're going to look at a company that has eliminated its dividend to see whether shareholders should have any hope of it being reinstated. Comstock Resources (NYSE: CRK) is an independent natural gas producer in Louisiana and Texas. In 2022, the company generated $630 million in free cash flow while paying out $51 million in dividends. Last year, free cash flow swung to -$408 million, but Comstock still paid nearly $140 million in dividends. As a result, the company announced in February that it was suspending its dividend. SPONSORED Yours Free! Top FIVE Dividend Stocks Right Now Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... completely free of charge! You'll discover... 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, Marc's No. 1 dividend stock for a LIFETIME of income. Click here to get the names and ticker symbols now... before the download link expires. **NO CREDIT CARD REQUIRED!** The outflow of cash should improve this year, but it's still expected to be well into the negative at -$159 million. View larger image   Comstock paid a dividend in 2013 and 2014 but eliminated it when free cash flow dried up. The company didn't revive the dividend until 2022, when it was cash flow positive again. Then, when free cash flow slid back into the negative in 2023, management again took the painful but responsible action of getting rid of the dividend. I suspect that if Comstock generates positive free cash flow for more than a year, it will resume paying a dividend to shareholders. But it won't be a dividend that investors can rely on, because management has shown it will wipe it out if the company is not generating any cash. I wouldn't expect a dividend from Comstock for at least a year and a half - maybe more. Since the company does not pay a dividend, there is no safety rating. But if it did pay a dividend, its grade would be an F. If you have a stock whose dividend safety you'd like us to analyze, click the button below to leave a comment. Let Us Know Your Favorite Dividend Stocks! 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. BUILD AND PROTECT YOUR WEALTH Here are Three Steps You Need to Take to Protect and Grow Your Money When America Is Threatened With Mass Unemployment. Watch This Before AI Goes Supernova. How to Trade Nvidia's Upcoming Earnings Report Expert Predicts Gold, Oil, Copper About to Soar Higher... Discover Why We're in a New Commodities Supercycle Right Here. How the Stock Market Can Make You Rich MORE FROM WEALTHY RETIREMENT Why Is Warren Buffett Holding a Record Amount of Cash? Maximize Your Profit Potential With Technical Analysis Kinder Morgan Is a Midstream Powerhouse Will Distributions Continue to Flow for Western Midstream Partners? 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