© Reuters.
Pactiv Evergreen Inc. (NASDAQ:PTVE) has announced that it will maintain its annual dividend rate at $0.40 per share, translating to a quarterly payment of $0.10 per share due on December 15th. This declaration comes as the company approaches its ex-dividend date on November 29th, with a yield of approximately 3.5% based on the current stock price of $11.32.
Investors interested in receiving this dividend must own shares before the ex-dividend date, considering settlement times. The sustainability of the company’s dividends has been under review, especially after last year’s losses. However, dividends are being supported by free cash flow with a conservative payout ratio of 20%.
Despite the steady dividend payments over the past three years, there is a heightened sense of caution among investors. This is due to concerns about the company’s ability to sustain these dividends in the event of a business downturn. Additionally, there are considerations about the long-term returns for shareholders, given that the dividend has remained unchanged despite an improving five-year earnings trend.
The consistent dividend comes amidst fluctuating stock values related to earnings per share growth, prompting investors to weigh the appealing yield against potential risks associated with Pactiv Evergreen’s future performance.
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