Pearson (PSO) Declares $0.18 Dividend

Pearson said on March 13, 2023 that its board of directors declared a regular semi-annual dividend of $0.18 per share ($0.36 annualized). Previously, the company paid $0.08 per share.

Shares must be purchased before the ex-div date of March 23, 2023 to qualify for the dividend. Shareholders of record as of March 24, 2023 will receive the payment on May 10, 2023.

At the current share price of $10.07 / share, the stock's dividend yield is 3.60%. Looking back five years and taking a sample every week, the average dividend yield has been 1.52%, the lowest has been 1.13%, and the highest has been 2.68%. The standard deviation of yields is 0.32 (n=236).

The current dividend yield is 6.43 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.42. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

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Analyst Price Forecast Suggests 23.29% Upside

As of March 16, 2023, the average one-year price target for Pearson is $12.41. The forecasts range from a low of $10.64 to a high of $15.11. The average price target represents an increase of 23.29% from its latest reported closing price of $10.07.

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The projected annual revenue for Pearson is $4,068MM, an increase of 5.91%. The projected annual non-GAAP EPS is $0.58.

What is the Fund Sentiment?

There are 379 funds or institutions reporting positions in Pearson. This is an increase of 25 owner(s) or 7.06% in the last quarter. Average portfolio weight of all funds dedicated to PSO is 0.13%, a decrease of 11.50%. Total shares owned by institutions decreased in the last three months by 12.26% to 59,317K shares. The put/call ratio of PSO is 0.24, indicating a bullish outlook.

What are Large Shareholders Doing?

VGTSX - Vanguard Total International Stock Index Fund Investor Shares holds 9,793K shares representing 1.37% ownership of the company. In it's prior filing, the firm reported owning 9,805K shares, representing a decrease of 0.12%. The firm increased its portfolio allocation in PSO by 32.36% over the last quarter.

SMCWX - SMALLCAP WORLD FUND INC holds 5,591K shares representing 0.78% ownership of the company. No change in the last quarter.

VTMGX - Vanguard Developed Markets Index Fund Admiral Shares holds 5,472K shares representing 0.77% ownership of the company. In it's prior filing, the firm reported owning 5,458K shares, representing an increase of 0.27%. The firm increased its portfolio allocation in PSO by 0.07% over the last quarter.

IEFA - iShares Core MSCI EAFE ETF holds 3,465K shares representing 0.49% ownership of the company. In it's prior filing, the firm reported owning 3,525K shares, representing a decrease of 1.73%. The firm increased its portfolio allocation in PSO by 30.53% over the last quarter.

CAIBX - CAPITAL INCOME BUILDER holds 2,479K shares representing 0.35% ownership of the company. In it's prior filing, the firm reported owning 9,554K shares, representing a decrease of 285.43%. The firm decreased its portfolio allocation in PSO by 66.97% over the last quarter.

Pearson Background Information
(This description is provided by the company.)

Pearson plc is a British multinational publishing and education company headquartered in London, England. It was founded as a construction business in the 1840s but switched to publishing in the 1920s. It is the largest education company and was once the largest book publisher in the world.

This story originally appeared on Fintel.