IGT stockholders are cashing in 20 cents in dividends now.

TLDR:

– International Game Technology (NYSE:IGT) is paying out a dividend of $0.20 per share on April 9th, resulting in a dividend yield of 3.9%.

– The company’s dividend has solid earnings coverage, with free cash flows comfortably covering the dividend.

International Game Technology PLC’s (NYSE:IGT) investors are set to receive a dividend payment of $0.20 per share on April 9th. This dividend yield of 3.9% is seen as an attractive boost to shareholder returns. While the company’s dividend has been higher than its profits in the past, the free cash flows have covered it well. The next year is projected to see earnings per share (EPS) grow by 121.8%. However, historical data suggests that the dividend payments from International Game Technology have been inconsistent, with cuts occurring at least once. Despite modest growth in the dividend, historical cuts raise concerns about the dividend’s stability over a full economic cycle. Additionally, while EPS has been rising at a rate of 37% per annum, the company is currently paying out 103% of its earnings as dividends, which may be seen as unsustainable without mitigating factors.

Overall, the article suggests that while the current level of dividend payment may be reliable in the short term, it might not be sustainable in the long run. Investors are advised to consider other factors when analyzing stock performance, including potential warning signs for International Game Technology. The company’s valuation is also highlighted as a key consideration for investors. Ultimately, the article emphasizes the importance of considering all aspects of a company’s performance before making investment decisions.