#431359
Postby Gengulphus » July 30th, 2021, 8:23 am
A 5% rise on last year's 6p. That's after Pearson held its dividend last year, but of course holding a dividend last year is a good deal better than many other HYP candidates managed, so IMHO it's one of the more forgivable HYP 'sins'. Its cut by about 2/3rds back in 2017 is rather worse, and although it's been recovering decently since then (apart from last year's hold), it takes over 20 years of 5%ish rises to recover from a cut by 2/3rds... Of course, once the damage is done, there's a 'no use crying over spilt milk' principle: recovering the lost income is likely to take many years no matter which share the capital is redeployed into.
Its yield of 2.35% is of course quite a bit too low to qualify as a new HYP purchase. So it only poses a question for those who (like me) already have it in their HYPs, and it's the classic one: stick with the devil you know, or jump into the arms of another that might turn out to be worse...
Gengulphus