John Wiley & Sons, the global publishing company, has announced an increase in its dividend to $0.35 per share on Monday, providing a yield of 3.8%. Despite not being regarded as a prime income stock, the firm has a commendable track record, having raised its dividend for 24 consecutive years, a noteworthy point highlighted by InvestingPro Tips.
Over the past decade, the company's strong free cash flows and stable policy have facilitated an annual dividend growth of 3.8%. This has seen dividends rise from $0.96 per share in 2013 to the current $1.40 per share. According to InvestingPro Data, the company's dividend growth for the last twelve months of 2023 is projected at 0.72%.
The company has experienced a 22% shrinkage in its earnings per share (EPS) annually over five years, an aspect that InvestingPro Tips indicates as a declining trend in earnings per share. Yet, an upturn is expected next year. If dividends maintain their current trajectory, this could result in a sustainable 95% payout ratio.
InvestingPro Tips also suggest that investors should be aware of the company's short-term obligations exceeding its liquid assets. This is one of the two undisclosed warning signs that investors are advised to exercise caution about.
John Wiley & Sons has a market capitalization of $2050.0 million, according to InvestingPro Data. The company's P/E ratio stands at -36.59, while its adjusted P/E ratio for the third quarter of 2023 is 18.62. The company's operating income margin for the same period is projected at 11.48%.
Investors might also be interested in the company's price performance. Over the past week, month, and three months, the company's total returns were -0.4%, 2.23%, and 10.36% respectively. However, the six-month and year-to-date returns stand at -2.24% and -5.39% respectively.
The company is due to announce its next earnings on December 6, 2023. The analyst target for the company's fair value is $45, while InvestingPro's fair value estimate is $40.54.
For investors seeking more insights, there are additional InvestingPro Tips available for John Wiley & Sons and other companies. These insights, available at InvestingPro, can provide valuable guidance for investment decisions.
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