RE: Lloyds Business Barometer27 Mar 2024 10:12
"New major risk - Revenue and earnings growth
Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future.
This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns.
Currently, the following risks have been identified for the company:
Major Risk
• Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future.
Minor Risk
• Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past.
Simply Wall St...
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