Is Ennis’s High Dividend Yield Sustainable?

Investors seeking reliable dividend income have long viewed Ennis as a stable holding, but recent fundamental trends suggest potential trouble ahead. The printing specialist’s attractive 5.44% dividend yield now faces scrutiny amid declining revenue, falling profits, and increasing bearish sentiment from short sellers. Market participants are questioning whether this income stock can maintain its generous distributions.

The company’s upcoming quarterly report, scheduled for September 22, represents a crucial test for Ennis. Market analysts anticipate disappointing results, projecting stagnant revenue and a decline in earnings per share from $0.41 to $0.38. These expectations follow a concerning 5.7% revenue drop in the previous quarter, indicating persistent challenges rather than temporary setbacks. Like many in the printing industry, Ennis appears vulnerable to structural headwinds affecting the sector.

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