On Tuesday, Perrigo Company plc (Symbol: PRGO) captured attention as its stock yielded over 4% based on its quarterly dividend of $1.104 per share. The shares traded as low as $27.53 during the day.
The Importance of Dividends in Stock Performance
Investors often prioritize dividends, as they have historically contributed significantly to the total stock market returns. For instance, if you had purchased shares of the iShares Russell 3000 ETF (IWV) on May 31, 2000, the initial investment of $78.27 per share would have seen a slight decrease to $77.79 by May 31, 2012—a reduction of $0.48 or 0.6% over twelve years. However, during that time, you would have earned $10.77 per share in dividends, boosting your overall return to 13.15%. Even following reinvestment of dividends, this results in an average annual total return of around 1.0%. Therefore, a sustainable yield exceeding 4% from Perrigo appears appealing against this backdrop.
Perrigo’s Status in the Stock Market
Perrigo Company plc is included in the Russell 3000, signifying its status as one of the largest companies on U.S. stock markets. This market position can provide insight into the company’s potential for sustained dividend payments.
Assessing Dividend Sustainability
Dividends can fluctuate depending on a company’s financial performance. To better understand whether Perrigo’s recent dividend distribution will continue, investors may look at the company’s historical dividend chart, provided below, to make more informed predictions about its annual yield prospects.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
