According to a recent survey, Manchester United is the second most popular soccer (some may call it football) club in the world. Man United has a storied history that dates back to the 1800s, and the Premier League club has won dozens of championships over the years, both in the UK and abroad.
While the club itself needs little introduction, Manchester United stock (NYSE: MANU) may not ring a bell with many stateside investors. However, the soccer club has been a publicly traded company since its 2012 IPO.
While there was an initial buzz around the company due to the team’s popularity, MANU shares have only climbed around 41% in the years since.
The stock vastly underperformed the S&P 500’s 322% gain over the same time period, but there are signs that MANU may be on the rise. Recent speculation that the club may put itself up for sale has driven a price uptick. The prospect of a dividend is another incentive to investors who are hungry for a piece of the historic franchise.
But does Manchester United stock pay dividends?
Can You Buy Shares of Manchester United Stock?
Manchester United is a British soccer team, but shares can be bought on the US stock exchange and are currently trading at just under $20. That’s actually down nearly 13% year-to-date, trading off of a high of $27.32 earlier this year. Still, the current price is well above where it was a year ago when it was $12.
The jump in price was based on news that the Glazer family, Manchester United’s longtime ownership group, was in talks to sell the team. In June, rumors that a consortium from Qatar was offering a $6 billion deal drove the stock price up. But the deal, with Qatar’s Sheikh Jassim, has yet to be finalized.
There’s a competing bid from UK investor Jim Ratcliffe, whose Ineos Firm brings in over $60 billion in revenue. Ratcliffe has lined up funding from major financial institutions in his bid, but as of yet, Man United leadership hasn’t pulled the trigger on the sale.
The sale of the team and any news related to it is sure to affect the stock’s price, and maybe even its availability, in the short term.
Do Manchester United Shares Pay Dividends?
The club has paid out dividends in the past, most recently at $0.09 per share. But that dividend was last paid out in the summer of 2022. Prior to that, Man United paid out a similar dividend once or twice a year going back to 2015.
While the stock does not currently pay out a dividend, Manchester United has done so in the past and could start back up again. But the resumption of the dividend is contingent on the profitability of the company.
In the 1st quarter of 2023, the club reported a net loss of £5.6 million. While still a loss, it’s a nearly 80% improvement year-over-year.
It’s a good sign that Manchester United is back on track toward profitability, and given the club’s history, the dividend could return as well. It’s still important to monitor news around the sale of the team because it could impact future dividends.
What Is The Annual Dividend For Manchester United?
Though the soccer club doesn’t currently pay out dividends, it previously paid at an annual dividend yield of 0.45%, amounting to an annual dividend of $0.18.
Any future dividends will depend on the profitability of the club and the news of the team’s impending sale.
There was positive news out of the earnings release that total revenue increased 11% over the same quarter in 2022. And while operating expenses still outweigh revenue, operating loss was 78% less than it was in the same quarter of last year.
Is The Manchester United Dividend Safe?
While it’s positive that revenue has increased and expenses have declined, the return of Manchester United’s dividend is far from a sure thing. Even if the football club does return to profitability, there’s no guarantee that it will decide to reward its shareholders with a dividend again.
Price volatility is likely as well, as investors wait to see if the team will change hands.
Is Now A Good Time To Buy Man Utd Shares?
Investors who are considering buying MANU at this price point are likely hoping for a sale announcement soon. The few analysts who’ve issued ratings on the stock seem to concur with that mindset.
There are only 2 analysts who’ve given guidance on Manchester United stock, but both analysts agree it’s on an upward trend.
One analyst has MANU as a buy, with a 28.3% upside to over $25 over the next 12 months. The other analyst rates the stock as a hold but still sees the price increasing 23.4% over the next 52 weeks to $24.45.
Is Manchester United Worth Investing In?
Manchester United is one of the most well-known sports brands in the world, but the club’s success on the pitch hasn’t fully translated to its stock. The soccer club ceased its dividend and was trading below its IPO price in 2022. But shares bounced back earlier this year on news that the Glazer family was taking bids for the team.
Aside from that positive news, Man United has managed to increase revenue and reduce expenses, though it still suffered a net loss in the 1st quarter of 2023. It remains to be seen whether that revenue increase will be long-term.
For dividend investors, MANU is currently a pass. For speculative investors who are hoping to buy in before the stock goes up on news of a sale, it’s a gamble. The stock is trading well below where it was earlier this year, but there’s no guarantee it will reach those highs again.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.