Dividend Payments Undermined by Falling Earnings for Air New Zealand Limited (Nzse:air)
Air New Zealand Limited is about to trade ex-dividend in the next 4 days, with a record date of March 5th and dividend payment on March 19th. The company's trailing yield of 4.0% on the current share price of NZ$0.625 may appear attractive, but it's essential to examine whether dividend payments are sustainable given falling earnings. Air New Zealand has seen its earnings per share plummet approximately 32% a year over the previous five years.
- The alarming rate of decline in Air New Zealand's earnings suggests that managing its dividend payout could become increasingly challenging in the future.
- Will the airline's efforts to balance dividend payments with maintaining profitability and investing in its business enough to counteract the risk of declining earnings?