Can BT Group plc afford its 6.6% dividend yield? - Investomania
It is due to report a further fall in EPS this year, with another decline forecast for next year. A new CEO is expected to take the reins in a couple of weeks, and he may decide that the company’s excess capital is better spent on things other than a dividend. Although I have not seen any information to suggest that a dividend cut may be ahead for BT, I feel that doing so could provide it with additional capital through which to deliver improving financial performance. Other FTSE 100 companies have cut their dividends in recent years, and now appear to be better placed to raise them as a result of rising profitability. Overall, I think that BT’s appeal is from a recovery perspective, rather than an income investing dimension. Although its dividend may be affordable, I believe there could be better income opportunities for me elsewhere in the FTSE 100 and FTSE 250.