FYI Edward Sheldon/Motley25 Jan 2018 19:52
https://www.fool.co.uk/investing/2018/01/25/is-neil-woodfords-7-3-yielding-dividend-stock-saga-plc-a-buy/
The share price fall has left the stock on a P/E of just 9.2, with a yield of 7.3%. Good value?
Taking a long-term approach, I�m cautiously optimistic about Saga�s prospects. For a start, the dividend looks safe to me. The company said in December that it remains fully committed to its progressive dividend policy, with its aim being to pay out 50%- 70% of net earnings. With analysts forecasting earnings and dividends of 13.3p and 8.85p per share respectively for FY2018, the payout ratio would be 67% � within the target band.
To my mind, Saga looks to be the kind of stock you buy and tuck away for a few years. Profit growth may be subdued in the near term, but over the long term, the company looks well placed to capitalise from the UK�s ageing population.