Public Service Enterprise Group Incorporated (NYSE:PEG) has announced that it will be increasing its dividend from last year’s comparable payment on the 31st of March to $0.63. Despite this raise, the dividend yield of 3.1% is only a modest boost to shareholder returns.
Check out our latest analysis for Public Service Enterprise Group
Public Service Enterprise Group’s Future Dividend Projections Appear Well Covered By Earnings
The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Prior to this announcement, Public Service Enterprise Group’s earnings easily covered the dividend, but free cash flows were negative. In general, we consider cash flow to be more important than earnings, so we would be cautious about relying on the sustainability of this dividend.
Over the next year, EPS is forecast to expand by 25.6%. If the dividend…
