Werner Enterprises, Inc. (NASDAQ: WERN) will be paying a dividend of $0.14 on July 17th. This dividend represents 1.6% of the current stock price, which is in line with the industry average.
The company’s earnings easily cover the dividend payments, with forecasted earnings per share expected to rise by 77.3% over the next year. This could result in a sustainable payout ratio of 27% by next year.
However, Werner Enterprises has a history of dividend volatility, with cuts in the past leading to a 67% decrease in dividend payments since 2014. The company’s earnings per share have also declined by around 12% per year over the past five years.
Overall, the current level of dividend payment may not be sustainable in the long term due to lacking cash flows. Investors should consider other factors beyond dividend payments when analyzing the company.
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