Big K

Cramer's Mad Money - Unhealthy Interest in AIG (5/14/09)

Motley Fool says NAT raises dividend money by selling stock. Cash flow from operations doesn't cover the dividend. I've also heard this from other reliable sources such as Value Line. Cramer seems to disagree. Cramer needs to explain the discrepancy here, not simply deny it. Give us the numbers in a sober detailed analysis of the balance sheets. Yes, NAT has no debt and is not a failing company, but I don't understand how they can pay out dividends that are bigger than their cash flow and/or earnings. Apparently, dilution is the solution to dividend contribution.