Pearson, PLC (NYSE:PSO) Announces $0.09 Semi-annual Dividend

Key Points

• Pearson, PLC announced a semi-annual dividend of $0.09 per share, set to be paid on September 22nd to investors of record as of August 15th, which reflects a significant yield of 210.0%.
• The company has a dividend payout ratio of 46.8%, indicating that its dividend is well covered by earnings, with projections for continued coverage based on expected earnings of $0.83 per share next year.
• Pearson's stock is currently trading at $14.95, with a market cap of $9.76 billion and recent institutional interest showing significant increases in holdings by various hedge funds.

Pearson, PLC (NYSE:PSO - Get Free Report) declared a semi-annual dividend on Tuesday, August 5th, Wall Street Journal reports. Shareholders of record on Friday, August 15th will be given a dividend of 0.0892 per share on Monday, September 22nd. This represents a yield of 210.0%. The ex-dividend date of this dividend is Friday, August 15th.

Pearson has a payout ratio of 46.8% meaning its dividend is sufficiently covered by earnings. Research analysts expect Pearson to earn $0.83 per share next year, which means the company should continue to be able to cover its $0.44 annual dividend with an expected future payout ratio of 53.0%.

Pearson Stock Performance

NYSE PSO traded down $0.13 on Friday, hitting $14.46. 512,444 shares of the company's stock were exchanged, compared to its average volume of 762,204. The company has a debt-to-equity ratio of 0.40, a current ratio of 2.31 and a quick ratio of 1.80. The firm's 50-day moving average price is $14.61 and its two-hundred day moving average price is $15.68. Pearson has a fifty-two week low of $13.10 and a fifty-two week high of $17.90. The firm has a market cap of $9.44 billion, a price-to-earnings ratio of 15.38, a P/E/G ratio of 2.45 and a beta of 0.58.

Wall Street Analyst Weigh In

Several research firms have issued reports on PSO. Wall Street Zen upgraded Pearson from a "hold" rating to a "strong-buy" rating in a research report on Sunday, August 3rd. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of Pearson in a research note on Monday. Finally, BNP Paribas raised Pearson from a "hold" rating to a "strong-buy" rating in a research note on Friday, June 27th.

Pearson Company Profile

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education.