For investors in high-yielding SSE (SSE), the dividend payout will arguably be the most closely watched metric when the energy provider reveals its results next week. Management has already outlined expectations of adjusted EPS of between 117p and 119p for the year, and a dividend increase at least equal to inflation based on the retail prices index.
IC TIP:
Hold
at
1513p
As for the dividend cover, management have guided a range of 1.2 times to 1.4 times until FY2018. The company has previously flagged a continuation of the decline in energy supply customers, meaning a likely fall in profits for the retail business. In wholesale, increased output in renewables is offsetting a reduction in gas production earnings.