Corning Incorporated (NYSE:GLW) is set to pay a dividend of $0.28 on September 27th, with a dividend yield of 2.9% which is above the industry average.
Despite the strong dividend yield, it is important to consider the sustainability of the payment. The company’s last payment did not cover what it was paying to shareholders, indicating potential difficulty in sustaining the current payout level.
However, with forecasted EPS growth of 188.6% over the next year, the payout ratio is estimated to be 60%, which could make the dividend more sustainable in the future.
Corning has a solid track record of paying dividends, with consistent growth from $0.40 to $1.12 annually since 2014, representing an 11% annual growth rate.
While investors have been receiving dividend income for some time, Corning’s EPS has declined by approximately 23% per year over the past five years, posing a potential risk to dividend payments if the trend continues.
In summary, while the dividend has not been cut, there are concerns about the sustainability of Corning’s payments in the future. Market movements emphasize the importance of a consistent dividend policy, but other factors should also be considered when analyzing stock performance.