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Organon (NYSE:OGN) Will Pay A Dividend Of $0.28

Organon & Co. (NYSE:OGN) has announced that it will pay a dividend on the 13th of June, with investors receiving $0.28 per share. This dividend payment represents 5.7% of the current stock price, which is above the industry average.

Organon’s dividend is well covered by earnings, as the company was easily earning enough to cover the dividend before making the announcement. Looking ahead, earnings per share is forecasted to decrease by 0.4% over the next year. With a payout ratio estimated at 28%, most of the company’s earnings are expected to be retained for future business growth.

While Organon has maintained a consistent dividend for a few years, it is important to note that the last annual payment of $1.12 was flat compared to three years ago. This lack of dividend growth indicates a relatively short dividend paying history, which may not be dependable in the long term.

Investors should be cautious about Organon’s dividend growth potential, as the company’s EPS has declined by approximately 19% per year over the past three years. This decline suggests that the business may be facing challenges that could impact its ability to increase dividend payments in the future.

Overall, while Organon’s consistent dividend payment is reassuring in the short term, the sustainability of the current level of payment is uncertain. Investors should consider various factors beyond dividend payments when evaluating the company. Organon has 3 warning signs that investors should be aware of. If you are a dividend investor, it may be beneficial to explore a curated list of high yield dividend stocks.

This article by Simply Wall St provides commentary based on historical data and analyst forecasts using an unbiased methodology. It is not intended as financial advice and does not recommend buying or selling any stock without considering individual objectives and financial situations. Simply Wall St aims to deliver long-term focused analysis driven by fundamental data, although the analysis may not include the latest company announcements or qualitative information.

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