Author: Brian Bollinger, Simply Safe Dividends

Let’s take a closer look at why the market was so disappointed with Cardinal Health’s business update and if the stock could be an attractive investment opportunity for our Top 20 Dividend Stocks portfolio…

After reading my recent article on Verizon, one of our members asked me the following question: “If I see apparently-cautionary stats like a spike in the payout ratio, and a sudden decline in free cash flow per share, but the Dividend Safety Score is high, do I ignore my instincts to avoid the stock, or do I assume that you have dug deeper and place (blind) faith in the high safety score?”

A number of readers have emailed me in recent weeks wondering about Verizon’s dividend safety. Their anxiety developed after reading several articles online that suggested the company’s dividend was no longer sustainable because its free cash flow did not cover it last year. I’ll do my best to walk through Verizon’s financial statements and objectively review the company’s dividend safety…