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Posted by
Two Blokes May 28, 2025 -
Filed in
Stock
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6 views
Pernod Ricard's stock has halved, pushing the dividend yield above 5%, but I remain cautious due to weak fundamentals and valuation concerns. Sales momentum has stalled, and high debt limits financial flexibility, making the current dividend payout unsustainable. The dividend now exceeds free cash flow for the second year in a row, raising the risk of a cut; a prudent reduction would benefit long-term health despite short-term disappointment.
