ITV Plc's Dividend Payment Sparks Concerns About Sustaining Payments
ITV plc's investors are due to receive a payment of £0.033 per share on 22nd of May, resulting in a dividend yield of 6.3%. However, concerns arise about the sustainability of the payments, given that EPS is set to fall by 29.5% over the next 12 months and the company has cut its dividend at least once in the last 10 years. While growing earnings per share could be a mitigating factor, ITV's dividend history suggests instability.
- The company's track record of reducing its dividend payments raises questions about its ability to maintain a consistent payout ratio, which could impact investor returns over the long term.
- What implications might this have for ITV's valuation and market position in comparison to other dividend-paying stocks?