Peabody Energy Corporation's (NYSE:BTU) shares are set to trade ex-dividend soon, with the record date immediately following. This is a crucial date for shareholders' eligibility for dividends. Investors need to acquire shares before November 8th in order to qualify for the forthcoming dividend payment on November 29th.
The upcoming dividend is US$0.075 per share, contributing to a total annual distribution of US$0.30 per share. Based on the current stock price of $23.63, this results in a trailing yield of 1.3%. The conservative payout ratio of Peabody, at 0.7% of its post-tax income, and dividends well-covered by free cash flow (amounting to 1.9% of last year's cash flow), indicate sound dividend coverage.
However, Peabody has faced a consistent annual dividend decline of 6.9% over the past six years. This trend is in contrast with the notable annual earnings per share growth of 30% over the past five years, suggesting that while the company's profitability has increased, it has not translated into increased dividends for shareholders.
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