How Safe is Western Digital's 4.6% Dividend Yield?
The novel coronavirus (COVID-19) pandemic is forcing many companies to suspend their buybacks and dividends to conserve cash. As a result, many dividend stocks are losing their luster in this brutal bear market.
One such stock is Western Digital (NASDAQ: WDC), which spent 291% of its free cash flow (FCF) on its dividend over the past 12 months. That lofty cash dividend payout ratio initially seems unsustainable, so will this hard disk drive manufacturer and data storage company be forced to reduce its forward yield of 4.6% in the near future?
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Source Fool.com