both radioshack and supervalu eliminated their dividends. the supervalu was really hard because the ceo had told me a year before he cut if that the dividend was safe. so what do you look for to tell if the dividend's secure? first, above and beyond everything else, we look at the earnings per share. my rule of thumb is if a company has earnings greater than twice its dividend payout, we know it can sustain the dividend even in lean times when the earnings shrink. in that case i think you're almost home-free. you can't ever be certain about anything. but the dividend seems secure. if not you need to go to step two. look at the cash flow. especially important when dealing with those companies that have a lot of machinery or other capital investments. cable companies, which cause them to report high depreciation and amortization costs. think of the high-yielding telcos, verizon, at&t. as communication networks, they don't come cheaply. these depreciation and amortization costs don't come out of a company's actual cash, but they do skew the ear