Pearson plc (NYSE:PSO) to Issue Dividend Increase – $0.21 Per Share

Pearson plc (NYSE:PSO) announced a semi-annual dividend on Friday, February 28th, Wall Street Journal reports. Stockholders of record on Friday, March 21st will be given a dividend of 0.2092 per share on Friday, May 16th. This represents a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, March 21st. This is a 120.2% increase from Pearson’s previous semi-annual dividend of $0.10.

Pearson has increased its dividend by an average of 2.3% per year over the last three years. Pearson has a payout ratio of 44.2% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Pearson to earn $0.83 per share next year, which means the company should continue to be able to cover its $0.42 annual dividend with an expected future payout ratio of 50.6%.

Pearson Price Performance

PSO opened at $16.43 on Wednesday. The stock has a fifty day moving average of $16.53 and a 200-day moving average of $15.37. The firm has a market capitalization of $10.95 billion, a P/E ratio of 17.47, a PEG ratio of 2.65 and a beta of 0.38. Pearson has a 12-month low of $11.78 and a 12-month high of $17.90. The company has a quick ratio of 1.72, a current ratio of 1.78 and a debt-to-equity ratio of 0.34.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. The Goldman Sachs Group upgraded Pearson to a “strong-buy” rating in a report on Thursday, January 30th. StockNews.com upgraded Pearson from a “hold” rating to a “buy” rating in a report on Monday, March 3rd. Finally, National Bankshares set a $18.00 target price on Pearson in a report on Tuesday, February 18th.

About Pearson

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.