RE: Tipped by AJ2 Jan 2021 18:15
Centrica pared its 2019 dividend to the bone, though I reckon that was seriously overdue. It was another company in trouble, with dividends sliding into uncovered territory. But it stubbornly kept paying, for at least two years too long in my view.
The 2020 dividend is set to yield only 1.3% this year. And that’s after Centrica shares have shed almost 80% of their value in five years. The price is down 47% so far in 2020. Still, Centrica bottomed in April and has since climbed 60%.
There should be a further earnings slip this year. But analysts finally have an upturn on the cards for 2021. If they have it right, we’ll see a modest uptick in earnings and the reinstatement of a decent dividend. It’ll be a lot less than the old days, but on today’s share price it would yield 4.6%. I rate Centrica a recovery opportunity to Buy.