Big Tech's AI Race is Squeezing the Middle Class of Coders
Welcome to Tech In Depth, our daily newsletter about the business of tech from Bloomberg's journalists around the world. Today, Vlad Savov explains what Big Tech's aggressive AI hiring spree means for regular engineers trying to stay employed.
Netflix beat: The world's most popular paid streaming service reported quarterly results that topped investor expectations in every major metric. Still, the shares declined in extended trading amid concerns of slowing user growth.
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11 minutes ago
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ArcelorMittal (AMS:MT) Strong Profits May Be Masking Some Underlying Issues
Explore ArcelorMittal's Fair Values from the Community and select yours The market shrugged off ArcelorMittal S.A.'s (AMS:MT) solid earnings report. We think that investors might be worried about some concerning underlying factors. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. How Do Unusual Items Influence Profit? For anyone who wants to understand ArcelorMittal's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from US$1.5b worth of unusual items. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. ArcelorMittal had a rather significant contribution from unusual items relative to its profit to June 2025. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On ArcelorMittal's Profit Performance As previously mentioned, ArcelorMittal's large boost from unusual items won't be there indefinitely, so its statutory earnings are probably a poor guide to its underlying profitability. For this reason, we think that ArcelorMittal's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. On the bright side, the company showed enough improvement to book a profit this year, after losing money last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. In terms of investment risks, we've identified 1 warning sign with ArcelorMittal, and understanding it should be part of your investment process. Today we've zoomed in on a single data point to better understand the nature of ArcelorMittal's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Morgan Advanced Materials' (LON:MGAM) Dividend Will Be £0.054
Morgan Advanced Materials plc (LON:MGAM) has announced that it will pay a dividend of £0.054 per share on the 17th of November. This means the annual payment is 6.1% of the current stock price, which is above the average for the industry. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Morgan Advanced Materials' Projected Earnings Seem Likely To Cover Future Distributions While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Based on the last payment, the company wasn't making enough to cover what it was paying to shareholders. This situation certainly isn't ideal, and could place significant strain on the balance sheet if it continues. Over the next year, EPS is forecast to expand by 195.2%. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 42% which brings it into quite a comfortable range. View our latest analysis for Morgan Advanced Materials Dividend Volatility Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the annual payment back then was £0.109, compared to the most recent full-year payment of £0.122. This implies that the company grew its distributions at a yearly rate of about 1.1% over that duration. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past. Morgan Advanced Materials Might Find It Hard To Grow Its Dividend Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Morgan Advanced Materials has seen EPS rising for the last five years, at 28% per annum. EPS has been growing well, but Morgan Advanced Materials has been paying out a massive proportion of its earnings, which can make the dividend tough to maintain. Morgan Advanced Materials' Dividend Doesn't Look Sustainable Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. Strong earnings growth means Morgan Advanced Materials has the potential to be a good dividend stock in the future, despite the current payments being at elevated levels. We don't think Morgan Advanced Materials is a great stock to add to your portfolio if income is your focus. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Case in point: We've spotted 4 warning signs for Morgan Advanced Materials (of which 1 is significant!) you should know about. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30 minutes ago
- Yahoo
Here's Why We're Wary Of Buying Aperam's (AMS:APAM) For Its Upcoming Dividend
It looks like Aperam S.A. (AMS:APAM) is about to go ex-dividend in the next 3 days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. This means that investors who purchase Aperam's shares on or after the 14th of August will not receive the dividend, which will be paid on the 11th of September. The company's upcoming dividend is €0.425 a share, following on from the last 12 months, when the company distributed a total of €2.00 per share to shareholders. Based on the last year's worth of payments, Aperam stock has a trailing yield of around 7.6% on the current share price of €26.32. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. It paid out 75% of its earnings as dividends last year, which is not unreasonable, but limits reinvestment in the business and leaves the dividend vulnerable to a business downturn. It could become a concern if earnings started to decline. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It paid out 101% of its free cash flow in the form of dividends last year, which is outside the comfort zone for most businesses. Cash flows are usually much more volatile than earnings, so this could be a temporary effect - but we'd generally want to look more closely here. While Aperam's dividends were covered by the company's reported profits, cash is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Were this to happen repeatedly, this would be a risk to Aperam's ability to maintain its dividend. Check out our latest analysis for Aperam Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Have Earnings And Dividends Been Growing? Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see Aperam earnings per share are up 7.8% per annum over the last five years. Earnings have been growing at a steady rate, but we're concerned dividend payments consumed most of the company's cash flow over the past year. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, Aperam has lifted its dividend by approximately 6.1% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders. The Bottom Line Should investors buy Aperam for the upcoming dividend? Earnings per share have grown somewhat, although Aperam paid out over half its profits and the dividend was not well covered by free cash flow. Overall it doesn't look like the most suitable dividend stock for a long-term buy and hold investor. With that being said, if you're still considering Aperam as an investment, you'll find it beneficial to know what risks this stock is facing. Our analysis shows 2 warning signs for Aperam and you should be aware of them before buying any shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
