Tags: Reed | Elsevier | yield | ENL

Reed Elsevier: Slow Growth, Attractive Yield

By    |   Monday, 19 Dec 2011 08:38 AM

European publisher Reed Elsevier (ENL) has a corporate and share listing arrangement which may confuse investors. As an investment, it should be noted, the company is in a slow growth mode, but it is paying out an attractive dividend yield.

Reed Elsevier is organized as two companies, Reed Elsevier Plc is based in the U. K. with shares trading in pence on the London Stock Exchange. Reed Elsevier NV is based in the Netherlands and trades in euros on the Euronext stock exchange in Amsterdam.

Both companies also trade as ADRs in the United States. The euro version trades on the NYSE under the symbol ENL and the U. K. shares trade under the symbol RUK. Each share of ENL is backed by two shares of Reed Elsevier NV.

The company issues detailed financial reports on a semi-annual basis and for the first and third quarters publishes an interim report on overall results. For the full year, the earnings estimate for ENL is $2.22 per share, up from $2.12 a year earlier. The earnings estimate for 2012 is $2.33 per ADR share.

Subscription publishing

Reed Elsevier provides publishing and exhibition services for the insurance, legal, science, technology and business communities. The company is divided into five business segments: LexisNexis Risk Solutions, LexisNexis Legal & Professional, Elsevier, Reed Business Information, and Reed Exhibitions. A large portion of company revenues is generated on a subscription basis, providing a stable future financial outlook.

Reed Elsevier pays dividends twice a year, an interim dividend which goes ex-dividend in August and a larger, final dividend with an ex date in April. ENL investors earned 97 cents per share in 2010 and the 2011 rate will be very similar. This dividend rate puts the stock yield at just above 4 percent.

Only one U.S. analyst follows the stock. However, Reed Elsevier is followed by 21 securities analysts in Europe. Approximately half of those analysts rate the stock as buy or outperform with a consensus rating of hold.

The company next reports on Feb. 16.

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European publisher Reed Elsevier (ENL) has a corporate and share listing arrangement which may confuse investors. As an investment, it should be noted, the company is in a slow growth mode, but it is paying out an attractive dividend yield. Reed Elsevier is organized as...
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2011-38-19
Monday, 19 Dec 2011 08:38 AM
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