Should Income Investors Look At Record plc (LON:REC) Before Its Ex-Dividend?
The company's next dividend payment will be UK£0.025 per share, and in the last 12 months, the company paid a total of UK£0.046 per share. Looking at the last 12 months of distributions, Record has a trailing yield of approximately 7.4% on its current stock price of UK£0.632. If you buy this business for its dividend, you should have an idea of whether Record's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.
Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Record paid out 92% of its earnings, which is more than we're comfortable with, unless there are mitigating circumstances.
Generally, the higher a company's payout ratio, the more the dividend is at risk of being reduced.
Check out our latest analysis for Record
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're encouraged by the steady growth at Record, with earnings per share up 9.0% on average over the last five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Record has increased its dividend at approximately 12% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.
Is Record an attractive dividend stock, or better left on the shelf? Record has been growing earnings per share at a reasonable rate, but over the last year its dividend was not well covered by earnings. Record doesn't appear to have a lot going for it, and we're not inclined to take a risk on owning it for the dividend.
So if you're still interested in Record despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. Every company has risks, and we've spotted 2 warning signs for Record you should know about.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 minutes ago
- Yahoo
S&P 500, Nasdaq close at records; Deckers soars on UGG demand
STORY: U.S. stocks gained on Friday, as the Dow added almost half a percent, and the S&P 500 and Nasdaq reached more record high closes, climbing four-tenths and about a quarter of a percent, respectively. The indexes were lifted on hopes the U.S. could reach a trade agreement with the European Union as soon as this weekend, when President Trump meets in Scotland with European Commission President Ursula von der Leyen. That's a sharp contrast to the market turmoil triggered by Trump's so-called "Liberation Day" tariffs, notes Brad Bernstein, managing director at UBS Private Wealth Management. "When we initially saw the 2-day, 10% sell-off, the markets really priced in worst-case scenarios and a lot of what Trump had said on Liberation Day being real. Since then, we've had this incredible recovery, now at all-time highs, close to 6400 today on the S&P, because the markets see that he's really negotiating with foreign countries. The markets are seeing that we've had an incredibly resilient economy. The markets are seeing we've had really no material impact on inflation, so far, into the data. And we've had a lot of positive events, such as the extension of the Trump tax cuts." Related Videos How meme stock mania is a 'sign of the times' 'We ask for more data' than FICO: VantageScore CEO Exciting Time, Data Center Construction Booming: Aon CFO Liquid Death CEO on energy drink push, consumers, & growth Stocks on the move Friday included Deckers Outdoor, which soared 11% after the maker of UGG boots and Hoka sneakers beat quarterly estimates. Shares of Intel tumbled 8.5% after the chipmaker forecast steeper quarterly losses than expected and announced plans to slash jobs. :: Charter Communications Shares of Charter Communications slumped more than 18% after the cable giant reported a deeper-than-expected broadband subscriber loss. And Paramount Global's stock dipped more than one and a half percent after U.S. regulators approved its $8.4-billion merger with Skydance Media. Investors next week will focus on the U.S. Federal Reserve, with policymakers on Thursday expected to hold interest rates steady as the central bank weighs the impact of tariffs on inflation. 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
New York Post
6 minutes ago
- New York Post
Trump's tariff plan seems to be working — proving all the naysayers wrong
For all the 'sky-is-falling' cries over President Donald Trump's tariffs, it looks like his strategy may be working — just as his Aug. 1 deadline nears. In the past week, the Trump folks struck deals with Japan, Indonesia and the Philippines — and may be on the verge of a deal with Europe: On Friday, the prez cited a 50-50 chance of reaching an agreement with the European Union. These developments — on top of previous deals with Vietnam, the United Kingdom and a framework on rare-earth exports and tech restrictions with China — go a long way toward standing up Trump's vision for the international economy, with better terms for America. And at least so far, no catastrophic fallout. Heck, the nation looks poised to benefit enormously on several fronts. Trump's deals in Asia, for starters, reopen US access to cheap markets, sidestepping China, our greatest economic and military rival. Indonesia and the Philippines will pay 19% tariffs on their exports to the United States and levy 0% tariffs on more than 99% of US goods. Japan will see 15% tariffs and invest more than half a trillion dollars into the US economy. Washington will also slap fewer restrictions on Indonesian, Filipino and Japanese goods, everything from cars and clothes to electronics and rubber. And now EU officials are signaling their support for a deal that would mirror the one Trump made with Japan — reciprocal tariffs of 15%. Notably, the EU includes 27 countries in a shared common market, representing the largest singular trading bloc for the United States. The EU deal would clearly benefit US consumers looking to buy, say, French wines or German cars, and also US producers seeking wider access to the European markets. Keep up with today's most important news Stay up on the very latest with Evening Update. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters Meanwhile, the resolution of trade issues with so many countries will calm markets and bring confidence and stability to the business community. As for the predicted inflation, it's nowhere to be seen: June's consumer price index came in at a reasonable 2.7%. Recall it hit 9% under Joe Biden. That's partially because corporations, unsure of whether high tariffs will remain permanent and nervous about hiking prices, have absorbed most of the tariffs' costs, at least for now. More good news: The tariffs brought in $64 billion in revenue for the government in just the first three months since Trump's April 2 'Liberation Day' announcement. He's suggested issuing 'rebates' based on that haul, but far better to use the new revenue to pay down the runaway national debt. Yes, there's plenty more to do: Team Trump needs to finalize agreements with Canada, India and Mexico, along with the EU, and numerous smaller countries, before the president's across-the-board reciprocal tariffs hit Aug. 1. So considerable uncertainty remains. But clearly the signs are good, at least so far — despite all the doomy predictions.
UPI
7 minutes ago
- UPI
Tesla shareS end week in decline amid third straight quarterly loss
Guests attend the opening of the retro-futuristic Tesla Diner & Drive-In in Los Angeles on Monday to view a prototype for a new form of deluxe Tesla charging stations. Photo by Jim Ruymen/UPI | License Photo July 24 (UPI) -- Tesla's shares price declined 1.74% for the week on Friday, two days after posting declining profits for a third straight quarter amid increased competition and a pending loss of federal tax credits. On Friday, the stock price closed at $316.06, up $10.76, or 3.52%, from the day before, when the stock slumped 8.2%. Its market capitalization slumped to $984.73 billion. Tesla earnings report was released after the market closed on Wednesday. Tesla is down 16.7% year to date but up 43.5% from one year ago, according to NASDAQ. Tesla's price was as low as $284.70 on June 5 when Elon Musk's feud with President Donald Trump intensified and $221.85 on April 8 when stock indexes and bond market were tumbling before Trump announced a pause on harsh tariffs on trading partners. The company's stock price reached a record of 479.86 on Dec. 17 before Trump entered the White House as president again on Jan. 20. Tesla first began trading on June 29, 2010, with an initial price offering of $17 but opened trading at $19 per share. Back then the only car for sale was the Roadster and two years before the Model S hit the market. The top-selling cars are now the Model Y SUV and Model 3 sedan. Musk wasn't Tesla founder but he invested early and served as chairman and took over as CEO in 2008. The conference call Thursdsay was light in earnings information and more focused on robotics and artificial intelligence. "The company offered remarkably little detail on some of the most important factors" - like its mysterious new lower-priced model - "making our outlook lean more on imagination than realistic targets," Truist's William Stein, who has a hold rating on Tesla, said in a note after the call in a report by CNN. "I wouldn't say it was a conference call that should be put in the Hall of Fame," Dan Ives of Wdbush Securities, told CNN on Thursday, but said he is still bullish on Tesla's robotics future with Musk in charge. "Communication on the call was less than stellar in terms of details, and I think that definitely played into the selloff that we're seeing." Tesla later told staff Thursday it plans to launch its Robotaxi service in San Francisco this weekend, according to an internal memo obtained by Business Insider. Tesla has a permit for testing its self-driving software in California with a driver behind the wheel. Earning report Looking back, Tesla sold $22.5 billion worth of products during the second quarter, which is $3 billion less than the $25.5 billion in sales during the same period in 2024. Tesla reported $1.2 billion in earnings profit from April to June, which is down from $1.4 billion a year earlier. The earnings drop is the third straight quarter for the EV maker that last reported an earnings gain during the third quarter last year. Driving much of the loss is a decline in Tesla vehicle sales, which totaled $16.7 billion during the second quarter -- down by 16% from a year ago. Tesla delivered 384,000 vehicles during the second quarter, which is 14% fewer than a year ago, the company announced in July. Several factors have contributed to the decline in Tesla sales, including the end to federal tax credits for buying electric vehicles and increased competition for EV makers in China and elsewhere. Musk recently cautioned investors about the approach of a "few rough quarters" due to the loss of the federal EV tax credits. A recently signed budget bill that Trump dubbed "one big, beautiful bill" eliminates a $7,500 federal tax credit after September. Trump said he does not intend to eliminate federal subsidies for Tesla, though. "I want Elon and all businesses within our country to thrive ... like never before," Trump said in a Truth Social post on Thursday. "The better they do, the better the USA does, and that's good for all of us," Trump added. Tesla also posted a decline in new vehicle registrations in Europe in July and only sold 4,300 units of its Cybertruck during the second quarter. Tesla sold about half as many Cybertrucks during the second quarter than it did a year earlier, according to Cox Automotive. Musk has announced Tesla will soon offer a new EV that costs less after beginning production in June. Industry analysts anticipate it will be similar to Tesla's electric Model Y SUV. Tesla's declining EV sales come as demand for EVs has grown by 1.5% so far in 2025 in the United States and by 32% and 26%, respectively, in China and Europe, Cox Automotive and Rho Motion reported. China's BYD EV maker is growing its market share there, while JATO Dynamics reported Volkswagen has overtaken Tesla as the top EV seller in Europe. Recent political turmoil also has led to negative publicity for Musk and Tesla by extension. Musk's recently controversial activities as the former director of the Department of Government Efficiency, subsequent fallout with Trump and recent announcement of founding a third political party have preceded declines in sales and Tesla's share price.
