| Last year, the company paid $370 million in dividends while generating $447 million in cash flow for a payout ratio of 83%. This year, because cash flow is forecast to grow to $487 million and the total dividends paid are projected to rise by a smaller amount to $385 million, the payout ratio is expected to dip to 79%. I am comfortable with REITs paying out as much as 100% of their FFO in dividends, because REITs are obligated by law to pay out 90% of their profits in dividends in order to receive favorable tax treatment. Keep in mind, profits are not the same as cash flow or FFO. But because REITs must pay out such a high percentage of their profits, their payout ratios are usually higher. Also, the purpose of most REITs is to pay shareholders a healthy amount of income, so it makes sense that their payout ratios are on the high side. In short, as long as the REIT is not paying out more in dividends than it takes in in cash flow, I'm OK with it - and so is the Safety Net model. So far, there don't seem to be any concerns with Stag's dividend safety. Can it earn a rare "A" grade? | 
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