How BT Group plc (ADR) (BT) Will Deliver Its Dividend

Meanwhile, the group has made good progress on supporting the pension scheme and reducing net debt. The pension deficit, which peaked at 9 billion pounds, and net debt, which peaked at 11 billion pounds, currently stand at 5.9 billion pounds and 7.8 billion pounds, respectively. The numbers aren’t at all bad for a company with a market capitalization of 25 billion pounds, especially as the adverse effects of quantitative easing on pension schemes should reverse in due course.

Summing up
BT looks well positioned to provide shareholders with the targeted dividend growth for the next two years — a level of growth that’s hard to come by in today’s market. At a current share price of 310 pence, new investors could expect a 3.4%-3.5% income for the year ahead with the prospect of that income increasing 10%-15% the following year.

The article How BT Group Will Deliver Its Dividend originally appeared on Fool.com.

G. A. Chester has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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