Paramount Global (NASDAQ:PARA) will pay a dividend of $0.05 on the 1st of July, with a dividend yield of 1.7%. This yield is slightly lower compared to other companies in the industry. Despite not currently generating a profit, Paramount Global is producing healthy free cash flows that easily cover the dividend payment. Analysts predict that EPS will increase significantly next year, resulting in a payout ratio of 9.5%, which is reassuring for the sustainability of the dividend.
While Paramount Global has a long history of paying dividends, there has been at least one instance of a dividend cut in the past 10 years. The annual dividend payment has decreased over time, indicating some volatility in the company’s dividend policy. With earnings per share declining at a rate of 40% annually over the past five years, there is limited growth potential for the dividend in the future.
Overall, Paramount Global’s dividend may not be considered sustainable due to the company’s declining earnings and inconsistent dividend payments. Investors should be cautious when considering this stock for income purposes. It is important to note that consistent dividend policies can instill greater investor confidence. However, there are other factors to consider when evaluating stock performance.
In conclusion, Paramount Global may not be the best choice for income-seeking investors. It is always advisable to conduct thorough research and consider all aspects of a company before making investment decisions.