Today, I’m looking at the latest 2018/2019 dividend forecasts for utility companies National Grid and SSE, as well as telecommunications group BT.
I review analysts’ dividend estimates on a quarterly basis, as they constantly fluctuate.
All figures are sourced from Stockopedia.
Analysts currently expect National Grid (LON: NG) to pay the following dividends:
2018 – 46.2p per share
2019 – 47.2p per share
At the current share price of 825p, those payouts equate to yields of 5.6% and 5.7%.
Over the last three months, changes to these forecasts have been negligible (+0.058p for 2018 and +0.011p for 2019) .
Analysts currently expect SSE (LON: SSE) to pay the following dividends:
2018 – 94.4p per share
2019 – 97.3p per share
At the current share price of 1,297p, those payouts equate to yields of 7.3% and 7.5%.
Over the last three months, changes to estimates have been negligible (-0.063p for 2018 and -0.059p for 2019).
Analysts currently expect BT Group (LON: BT.A) to pay the following dividends:
2018 – 15.7p per share
2019 – 16.1p per share
At the current share price of 235p, those payouts equate to yields of 6.7% and 6.9%.
Over the last three months, analysts have downgraded their 2018 dividend estimate by 0.16p and downgraded their 2019 dividend estimate by 0.52p.
Is BT’s yield a bargain?
BT’s prospective yield of 6.7% is certainly high. I think investors need to be careful. At that level, it suggests that the market has doubts over the sustainability of BT’s dividend. That’s understandable, given BT’s high debt levels and massive pension deficit. I’m steering clear for now.
Disclosure: Edward Sheldon, CFA has no position in any companies mentioned.
This article is provided for general information only and is not intended to be investment advice. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.