**Genus' Dividend Payment to Face Sustainability Test**
The board of Genus plc has announced a dividend payment of £0.103 per share on April 4th, which translates to an annual payment of 1.7% of the current stock price, lower than the industry average. The dividend yield is relatively low, but the sustainability of payments is crucial in evaluating an income stock like Genus. However, with earnings per share forecast to rise exponentially over the next year, the payout ratio could reach unsustainable levels.
- The key challenge facing investors in Genus is reconciling the attractive dividend payment with the potential risks associated with declining earnings per share.
- Can the company's free cash flows sustainably cover the dividend payments while navigating its long-term profitability challenges?