Ford's dividend quality, J&J's split-off, cost basis discipline — what we think about all these
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Send your questions directly to Jim Cramer and his team of analysts at investingclubmailbag@cnbc.com . Reminder, we can't offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries. Question 1: What are your thoughts on the stability of FORD's dividend? Thank you, Denise The quickest way to determine the sustainability of a company's dividend is to consider it in relation to earnings and/or cash flow. The dividend payout divided by the earnings number is referred to as the "payout ratio" — below 100% is generally considered sustainable (so long as it's positive). A negative number would imply negative earnings, which is obviously bad. A payout ratio above 100% would also be something to be concerned about because it means the company is paying out more than it makes and therefore eating into the cash on its balance sheet, an obviously unsustainable dyna...