Our analysis is based on comparing UBM Plc with the following peers – RELX PLC Sponsored ADR, TechTarget, Inc. and Pearson PLC Sponsored ADR (RELX-US, TTGT-US and PSO-US).
Dividend Quality Overview
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 1 was medium quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to June 30, 2017), UBMPY-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 0.55x), investing cash flow (coverage of -1.35x), issuance cash flow (coverage of 0.51x) and twelve-month prior cash (coverage of 1.58x), for a total dividend coverage of 1.37x.
UBMPY-US’s issuance cash flow includes outflows from net share buybacks (coverage of -0.01x). Thus, the total coverage including share buybacks is 1.38x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||N/A||3.87||3.31||4.19||12.73||2.83|
|Dividend Payout (%)||61.84||73.18||61.24||116.01||399.41||357.54|
A complete list of metrics and analysis is available on the company page.
UBM Plc is a global events-led marketing services and communications company. It is focused on serving professional commercial communities, including doctors, game developers, journalists, jewelry traders, farmers and pharmacists around the world. The company operates through the following business segments: Events and Other Marketing Services. The Events segment provides face to face interaction in the form of exhibitions, trade shows, conferences and other live events. The Other Marketing Services segment offers sector specific digital and print products, such as community websites, digital directories and print publications. UBM was founded in 1918 and is headquartered in London, the United Kingdom.
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