According to First Group Company (2012) The First
Group Company dividend yield is 11.01%, which represents 66.7% of the estimated
earnings, cited by Financial Times (2012). Therefore, the dividend is covered,
but not powerfully, and rationally probable to prove sustainable.
It is possible to say that the First Group dividend is
perhaps safe this year but will almost certainly be halved or axed completely
in 2013. According to The current yield of 11%, which indicates a clear warning
sign for the company. Moreover, it is quite likely to predict that the
share price for First Group could continuous falling within the next couple of
months. Since the share price has fallen below the psychologically important of
200GBp level. . This company would have a better chance of turning things
around, if the UK government had a sensible transport policy.
However, as far
as the future outlook of the First group company; it can be expected that the
performance of the company will increase in the coming times due to its
excellent services and the unique traveling facilities provided by the company.
In the hospitality industry of the UK, First Group Company will have a much
greater name in the years ahead, it does believe that First Group Company has a strategy management and clear vision along with a strong management team.
BIBLIOGRAPHY
WEBSITES
- First Group (2012) “ First Group Latest News” [online] Available at: http://www.firstgroup.com/corporate/latest_news/ (Accessed 28/05/2012).
- Financial Times (2012) "First Group PLC" [online] Available at: http://markets.ft.com/Research/Markets/Tearsheets/News-andcomment?s=FGP:LSE (Accessed 28/05/2012).
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