Organon & Co’s Dividend Yield Exceeds 6%: A Look at Stock Performance and History
On Friday, shares of Organon & Co (Symbol: OGN) showcased an attractive yield that surpassed 6%, supported by a quarterly dividend of $1.12. The stock dipped to a low of $18.12 during trading, raising questions about the sustainability of its dividend.
The Importance of Dividends in Investment
Dividends play a vital role in providing returns to investors. Historically, they have contributed significantly to overall stock market returns. For example, if you had invested in the iShares Russell 3000 ETF (IWV) on May 31, 2000, purchasing shares at $78.27 each, the situation looked bleak by May 31, 2012. The share price had fallen slightly to $77.79, reflecting a total decline of $0.48 or a 0.6% drop over twelve years. However, those investors received $10.77 per share in dividends during that time, transforming their overall return to 13.15%. When taking dividends into account, even reinvested dividends, the average annual total return remained around 1.0%. In this context, a yield above 6% appears quite appealing if sustainable. Organon & Co (Symbol: OGN) is part of the Russell 3000, indicating its status among the largest companies in the U.S. stock markets.
Can Organon & Co Maintain Its Dividend?
Dividend amounts can vary significantly depending on each company’s profitability. Evaluating Organon & Co’s historical dividend data can offer insights into whether the current dividend is sustainable, and thus whether a 6% annual yield is a realistic expectation.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
