Pearson's Ex-Dividend Date Approaches, UK£0.078 Dividend Payment Expected in September.

Pearson, a UK-based education company, is set to pay a dividend of UK£0.078 per share on September 15. This represents a trailing yield of 2.3% based on the current stock price of UK£10.75. The dividend is covered by earnings and cash flow, with a payout ratio of 37% and 26%, respectively. This suggests that the dividend is sustainable and a lower risk.

Pearson plc (LON:PSON), a UK-based education company, has announced a dividend of £0.078 per share, set to be paid on September 15, 2025. This dividend represents a trailing yield of 2.3%, based on the current stock price of £10.75. The company's ex-dividend date is August 14, 2025, meaning that any purchase of the stock made on or after this date will not receive the dividend [3].

Pearson's dividend is covered by both earnings and cash flow, indicating its sustainability. The payout ratio is 37% of earnings and 26% of free cash flow, suggesting that the dividend is well-supported and a lower risk for investors. This is particularly encouraging given that the company has been reinvesting a significant portion of its earnings back into the business, which is expected to grow earnings per share (EPS) by 11.2% in the next year [1].

While Pearson has a history of dividend cuts, the recent trend shows a growing EPS, which could lead to future dividend growth. The company's dividend has been declining at a rate of about 7.1% per year over the past decade, but the current earnings growth and low payout ratio suggest that this trend could reverse [1].

Ford Motor Company (F), another notable dividend payer in the automotive sector, has also shown resilience despite facing significant tariff pressures. After reinstating its full-year outlook, Ford's quarterly dividend yield of 6.93% remains attractive for income investors, and the company's forward payout ratio of 42.87% is well-supported by strong financials and operational efficiency [2].

In conclusion, Pearson's recent dividend announcement and financial projections indicate a sustainable and attractive income opportunity. The company's dividend is well-covered by earnings and cash flow, and the expected EPS growth suggests potential for future dividend increases. While investors should remain cautious about the company's history of dividend cuts, the current trends and financial health indicate a promising outlook.

References:
[1] https://finance.yahoo.com/news/pearson-lon-pson-announced-dividend-054546025.html
[2] https://www.barchart.com/story/news/33904236/this-high-yield-dividend-stock-faces-a-2-billion-tariff-hit-but-its-payouts-look-safe-for-now
[3] https://uk.finance.yahoo.com/news/theres-lot-pearsons-lon-pson-071230426.html