Eyes Down for BT Group plc (ADR) (BT)’s Results

Dividend
BT Group plc (ADR) (NYSE:BT)’s revenue, earnings, and cash flow forecasts for the full year aren’t exactly scintillating, and are little changed from six months ago. Yet the share price has risen inexorably.

The rise has been partly due to the company’s interim dividend announcement last November. At the start of the year, BT had said it intended to grow its dividend by 10%-15% a year for the next three years. The company then lifted its interim dividend by 15.4% to 3 pence from 2.6 pence. The shares jumped on the magnitude of the rise, which the board indicated was a measure of “our confidence in the future of our business.”

Analysts haven’t got carried away: the consensus forecast for the full-year dividend is 9.5 pence. If the consensus is on the button, look out for a final dividend of 6.5 pence (up 14% on last year’s final).

The article Eyes Down for BT Group’s Results originally appeared on Fool.com.

G. A. Chester has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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