Is the FLNG dividend of 13% due to poor stock performance and it is at risk of being lowered?

**Flex LNG's (FLNG) 13% dividend yield is not necessarily a result of poor stock performance**, and the dividend is not immediately at risk of being lowered. Here's why:

1. **Strong Dividend History and Policy**: Flex LNG has a history of consistent dividend payments, even increasing them over the years. The company aims to distribute surplus cash to shareholders, preferably as dividends. This indicates a stable and committed dividend policy.
2. **Current Financial Health**: Flex LNG reported strong financial results for Q1 2025, with earnings per share (EPS) of $0.54, surpassing estimates. The company's revenue was also above forecast, showing robust business performance. Additionally, the company has a solid financial health with a debt-to-equity ratio of 2.24 and a current ratio of approximately 2.99.
3. **Dividend Payout Ratio Considerations**: The dividend payout ratio is a measure of how much of the company's income is distributed to shareholders. A high payout ratio can indicate that a company is retaining less profit to reinvest in growth. Flex LNG's payout ratio for the months ended in March 2025 was 1.39, which is relatively high, but this does not automatically mean the dividend is unsustainable. The company's historical payout ratios have varied, with a past minimum of 0.25 and a maximum of 1.36. The current payout ratio is within the range of historical norms.
4. **Market Position and Future Outlook**: Flex LNG has a strong market position with a significant contract backlog, covering up to 88 years if options are exercised. The company has also maintained full-year revenue guidance, indicating confidence in its future earnings. This solid market position and future earnings potential support the company's dividend payments.
5. **Recent Financing Moves**: Flex LNG has secured refinancing deals for its vessels, unlocking significant capital and extending debt maturity. This financial maneuvering suggests the company has the flexibility to sustain its dividend payments.

In conclusion, while Flex LNG's dividend payout ratio is high, it is not solely due to poor stock performance. The company's strong financial performance, dividend history, and strategic financing moves indicate that the dividend is not immediately at risk of being lowered. However, the high payout ratio does warrant monitoring, especially if free cash flow continues to decline as forecasted.