Is WPP a dividend cutter in waiting?

[monabri]

From the Annual Report

https://www.wpp.com/investors/results-p ... rts?page=1

Free cash flow seems similar to last year.

Debt has more than halved (proceeds from Kantar sale)

Residual proceeds from Kantar sale are going to share buybacks (and look at the price they are buying back) ..$0.3bn bought back with another $0.9bn to go.

Free cash flow per share for the last 9 yrs that I can see has comfortably exceeded the divi paid.

http://financials.morningstar.com/ratio ... region=GBR

I'm not sure why the poor sentiment. There are more suspect HYP candidates out there than WPP imho.

[moorfield]

I do rather like the HYP stalwart, WPP. But it's business isn't that stable in it's recent history and it's still reshaping and realigning it's core businesses. The shares have tanked recently pushing the yield up to very high levels. I have recently been close to pulling the trigger on a WPP purchase. But I feel the yield may simply be too good to last whilst the business is still under some pressure. What's the view from the HYP commentators please? A cutter in waiting?

WPP's yield is currently 1.6x FTSE100 which is not too alarming for me, I wouldn't touch it at more than 2.0x.

If you think the yield is too good to last, consider this: RIO, AV., RDSB all yield more. Are they cutters in waiting too?