If you're unfamiliar with SiriusXM, think of it like cable TV but for radio. You have lots more choices than with regular AM and FM radio, and you can create a library of channels that's just right for you. Even better, the music stations don't play only the top hits, and you can find a wide range of opinion on the talk channels. Plus, there's comedy, live broadcasts of your favorite sports teams, and more. I'm a fan... and I'm not the only one. Sirius has 33 million subscribers. Sirius' stock - Sirius XM Holdings (Nasdaq: SIRI) - also sports a 5.2% yield, which may make income investors happier than Howard Stern landing a P. Diddy interview. But can investors rely on that dividend? Though I've been a loyal customer for years, Sirius is a high-churn business. As a result, revenue has been declining since 2022 and free cash flow has been slipping since 2021. If you've been reading my Safety Net columns for any length of time, you know that falling cash flow is often the kiss of death for companies' dividend safety ratings. Is that the case for SiriusXM, or can it manage to salvage its grade? |
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