Nearly a year ago, Safety Net gave healthcare communications company Spok Holdings (Nasdaq: SPOK), which is pronounced "spoke," an "F" for dividend safety - mostly because of plummeting free cash flow between 2019 and 2022. Additionally, after a 150% dividend increase in 2022, the company's payout ratio was over 900%! That means it was paying an astonishing $9 in dividends for every $1 in free cash flow. That's as unsustainable as it gets. Let's see whether Spok has improved its ability to pay its dividend since last November. |
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