Pearson plc
PSOCommunication Services · Stock · semiannual payer
Forward Yield
2.10%
Annual Dividend
$0.34
Payout Ratio
49%
5-Yr Growth
3.4%
Ex-Date
Mar 20, 2026
Frequency
Semiannual
Summary
As of July 2026, Pearson plc (PSO) yields 2.10% ($0.34 per share annually), with a blended fair-value estimate of $14.78 — -9% downside, so it screens as fairly valued. Dividend safety grade: B (69/100). 3 years of dividend growth.
Is PSO a good dividend stock?
Yes, with caveatsPearson plc (PSO) pays a semiannual dividend yielding 2.10% ($0.34/yr), with 3 years of growth and a dividend-safety grade of B. It's a solid income payer, but check the caveats below before buying.
Advantages
- Comfortable payout ratio (49%)
- 54% total price return over 5 years
Risks
- Cut its dividend in 2017
Key Data
- Dividend Yield
- 2.10%
- Payout Ratio
- 49%
- Annual Dividend
- $0.34
- 5-Yr Avg Growth
- 3.4%
- Ex-Dividend Date
- Mar 20, 2026
- Years of Growth
- 3
- Frequency
- semiannual
- Beta
- -0.04
- Market Cap
- $9.8B
- P/E Ratio
- 24.0
- 5-Yr Total Return
- 54%
- 52-Week Range
- $12.02 – $17.66
- Dividend Safety
- B · 69/100
- Ever Cut?
- Yes (2017)
Frequently Asked Questions
PSO Price — Last 12 Months
Daily close
Price Return
1 Year
+12%
3 Years
+54%
5 Years
+54%
52-Week Range
$12.02 – $17.66
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is PSO worth?
Fairly valuedmedium confidenceOur blended fair-value estimate for Pearson plc is $14.78 per share, versus a market price of $16.29. That implies the stock is roughly fairly priced.
Fair Value
$14.78
Current Price
$16.29
Gap
-9%
Margin of Safety
-10%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 10.6% annual free-cash-flow growth. We model 11.5% — below our estimate, leaving room for upside if the business executes.
Assumptions: 9.3% discount rate (CAPM), 11.5% stage-1 growth, 2.5% terminal growth, $0.68 EPS, $0.34 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
PSO Dividend Safety Score
Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Mar 20, 2026 | — | $0.2350 | regular |
| Aug 15, 2025 | — | $0.0890 | regular |
| Mar 21, 2025 | — | $0.2090 | regular |
| Aug 9, 2024 | — | $0.0950 | regular |
| Mar 21, 2024 | — | $0.1990 | regular |
| Aug 10, 2023 | — | $0.0900 | regular |
| Mar 23, 2023 | — | $0.1820 | regular |
| Aug 11, 2022 | — | $0.0810 | regular |
| Mar 24, 2022 | — | $0.1890 | regular |
| Aug 12, 2021 | — | $0.0880 | regular |
| Mar 25, 2021 | — | $0.1890 | regular |
| Aug 13, 2020 | — | $0.0780 | regular |
| Mar 26, 2020 | — | $0.1740 | regular |
| Aug 15, 2019 | — | $0.0730 | regular |
Income Calculator
At $0.34 / yr per share
