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Dividend Yield: 6%

Morgan Advanced Materials offers a dividend yield of 5.98%, placing it among the top UK payers. However, its dividend sustainability is questionable due to a high cash payout ratio of 198.8%, indicating dividends aren't well covered by free cash flows despite reasonable earnings coverage (69.1%). The company has historically volatile and unreliable dividends, with recent earnings growth of 7.7% not fully offsetting concerns about its high debt levels and large one-off financial items impacting results.

• Get an in-depth perspective on Morgan Advanced Materials' performance by reading our dividend report here.

• Our valuation report unveils the possibility Morgan Advanced Materials' shares may be trading at a discount.

WPP

Simply Wall St Dividend Rating: ★★★★★★

Overview: WPP plc is a creative transformation company offering communications, experience, commerce, and technology services across various global regions with a market cap of approximately £6.36 billion.

Operations: WPP plc's revenue is primarily derived from its Global Integrated Agencies segment (£12.56 billion), followed by Public Relations (£1.16 billion) and Specialist Agencies (£1.02 billion).

Dividend Yield: 6.6%

WPP offers a high dividend yield of 6.65%, ranking it in the top UK payers, with dividends well-covered by cash flows (36.1% payout ratio) and earnings (78.3% payout ratio). The company has maintained stable and reliable dividends over the past decade, supported by significant earnings growth of 392.7% last year. However, WPP faces challenges with flat revenue forecasts for 2025 and is navigating strategic changes like potential asset sales to optimize its financial position amidst substantial debt levels.

• Unlock comprehensive insights into our analysis of WPP stock in this dividend report.

• Our comprehensive valuation report raises the possibility that WPP is priced lower than what may be justified by its financials.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include LSE:MACF LSE:MGAM and LSE:WPP.

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