Dividend Cuts – The Silent Killers of Passive Income

Most dividend investors focus on how much they’re earning. Fewer ask if that income is sustainable. But the harsh truth is this: Dividend cuts can erase years of progress in a single announcement.

What Triggers a Dividend Cut?

Dividend cuts are rarely random. They’re preceded by quiet warnings:

• ⚠ Payout ratio consistently over 100%
• 📉 Declining revenue or free cash flow
• 💰 Borrowing to fund the dividend
• 📊 Management guidance quietly removed

The Investor's Blind Spot

Even experienced investors miss these signals because they’re buried in earnings transcripts, footnotes, or press calls. That’s where AI comes in.

How AI Detects Dividend Risk Before It Hits

With the right prompts, AI can:

• 🧠 Analyze years of earnings reports in seconds
• 🧠 Compare free cash flow vs dividend obligations
• 🧠 Flag payout ratio spikes across quarters

This transforms dividend investing from passive guesswork into active surveillance.

Prevent the Cut, Protect the Plan

Dividend investing isn’t just about growing income — it’s about preserving it. Use AI to vet your holdings monthly, and you’ll never be blindsided again.