Dividend Investors Beware: Checking Sustainability of Ryerson Holding's (NYSE:RYI) Upcoming US$0.1875 Dividend
Ryerson Holding Corporation is set to pay its upcoming dividend on the 20th of March, but investors need to investigate whether the company can afford this payment and if it could grow in the future. The company's last year was marked by a loss, but it managed to pay out just 24% of its free cash flow in dividends. Ryerson Holding has reported improving income over the past five years, but its business does not quickly recover from losses, making it an uncertain candidate for dividend investors.
- Despite its growing income, Ryerson Holding's ability to maintain a sustainable dividend hinges on its future earnings growth and its capacity to generate sufficient cash flow.
- How will Ryerson Holding's dividend sustainability be affected by the potential risks of industry disruption or regulatory changes in the next few years?