Latest news with #PSON
Yahoo
10-08-2025
- Business
- Yahoo
There's A Lot To Like About Pearson's (LON:PSON) Upcoming UK£0.078 Dividend
Explore Pearson's Fair Values from the Community and select yours Pearson plc (LON:PSON) is about to trade 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 an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Pearson investors that purchase the stock on or after the 14th of August will not receive the dividend, which will be paid on the 15th of September. The company's upcoming dividend is UK£0.078 a share, following on from the last 12 months, when the company distributed a total of UK£0.24 per share to shareholders. Based on the last year's worth of payments, Pearson has a trailing yield of 2.3% on the current stock price of UK£10.75. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. That's why it's good to see Pearson paying out a modest 37% of its earnings. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Fortunately, it paid out only 26% of its free cash flow in the past year. It's positive to see that Pearson's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Pearson Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Have Earnings And Dividends Been Growing? 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. Fortunately for readers, Pearson's earnings per share have been growing at 15% a year for the past five years. Earnings per share have been growing rapidly and the company is retaining a majority of its earnings within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Pearson's dividend payments per share have declined at 7.1% per year on average over the past 10 years, which is uninspiring. Pearson is a rare case where dividends have been decreasing at the same time as earnings per share have been improving. It's unusual to see, and could point to unstable conditions in the core business, or more rarely an intensified focus on reinvesting profits. Final Takeaway Has Pearson got what it takes to maintain its dividend payments? It's great that Pearson is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. It's disappointing to see the dividend has been cut at least once in the past, but as things stand now, the low payout ratio suggests a conservative approach to dividends, which we like. It's a promising combination that should mark this company worthy of closer attention. On that note, you'll want to research what risks Pearson is facing. Our analysis shows 1 warning sign for Pearson and you should be aware of it 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.
Yahoo
08-08-2025
- Business
- Yahoo
Pearson (LON:PSON) Has Announced A Dividend Of £0.078
Pearson plc (LON:PSON) will pay a dividend of £0.078 on the 15th of September. This takes the annual payment to 2.2% of the current stock price, which is about 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. Pearson's Future Dividend Projections Appear Well Covered By Earnings We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. However, Pearson's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business. The next year is set to see EPS grow by 11.2%. Assuming the dividend continues along recent trends, we think the payout ratio could be 29% by next year, which is in a pretty sustainable range. View our latest analysis for Pearson Dividend Volatility While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The dividend has gone from an annual total of £0.51 in 2015 to the most recent total annual payment of £0.244. Doing the maths, this is a decline of about 7.1% per year. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. The Dividend Looks Likely To Grow Dividends have been going in the wrong direction, so we definitely want to see a different trend in the earnings per share. We are encouraged to see that Pearson has grown earnings per share at 15% per year over the past five years. Pearson definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio. We Really Like Pearson's Dividend Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Pearson that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated 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.
Yahoo
03-08-2025
- Business
- Yahoo
Pearson First Half 2025 Earnings: EPS: UK£0.25 (vs UK£0.23 in 1H 2024)
Pearson (LON:PSON) First Half 2025 Results Key Financial Results Revenue: UK£1.72b (down 1.8% from 1H 2024). Net income: UK£164.0m (up 4.5% from 1H 2024). Profit margin: 9.5% (in line with 1H 2024). EPS: UK£0.25 (up from UK£0.23 in 1H 2024). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Pearson Earnings Insights Looking ahead, revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Consumer Services industry in Europe. Performance of the market in the United Kingdom. The company's shares are up 7.6% from a week ago. Balance Sheet Analysis Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. See our latest analysis on Pearson's balance sheet health. 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
01-04-2025
- Business
- Yahoo
There's Been No Shortage Of Growth Recently For Pearson's (LON:PSON) Returns On Capital
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, Pearson (LON:PSON) looks quite promising in regards to its trends of return on capital. The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Pearson is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.10 = UK£565m ÷ (UK£6.9b - UK£1.5b) (Based on the trailing twelve months to December 2024). Therefore, Pearson has an ROCE of 10%. In isolation, that's a pretty standard return but against the Consumer Services industry average of 14%, it's not as good. Check out our latest analysis for Pearson Above you can see how the current ROCE for Pearson compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Pearson . Pearson is showing promise given that its ROCE is trending up and to the right. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 71% over the last five years. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking. As discussed above, Pearson appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. And a remarkable 188% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it's worth looking further into this stock because if Pearson can keep these trends up, it could have a bright future ahead. While Pearson looks impressive, no company is worth an infinite price. The intrinsic value infographic for PSON helps visualize whether it is currently trading for a fair price. While Pearson isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. 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.
