Worley (ASX:WOR) Confirms Dividend Payment of A$0.25

Worley Limited Dividend Announcement

• Dividend Payment: Worley Limited (ASX:WOR) will distribute a dividend of A$0.25 on October 1st, resulting in a dividend yield of 3.4%, which aligns with industry standards.
• Future Dividend Forecast: The company is projected to maintain a sustainable payout ratio of 42% next year, supported by an anticipated 52.4% increase in earnings per share.

Historical Dividend Performance

• Dividend History: Worley has a mixed dividend history, with cuts since 2015. The annual payment has decreased from A$0.56 to A$0.50, reflecting a decline of approximately 1.1% per year.
• Earnings Growth: Despite past cuts, Worley has achieved a 19% annual growth in earnings per share over the last five years, indicating potential for future dividend increases.

Investment Considerations

• Dividend Stability: A consistent dividend policy is likely to attract more investor interest compared to companies with erratic dividend histories.
• Cautionary Note: Investors should be aware of one warning sign regarding Worley, suggesting a need for careful analysis beyond just dividend yields.

Conclusion

• Overall Outlook: Given the current earnings coverage of dividends and the potential for growth, Worley Limited presents a promising opportunity for dividend investors, although caution is advised due to its historical dividend cuts.