GameStop Price Drop: What Does It Mean For The 7% Dividend Yield? (Video)

| About: GameStop Corp. (GME)
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Summary

GameStop shares plunged following its recent earnings report.

The drop caused GameStop's dividend yield to rise over 7%.

By calculating the payout ratio and examining free cash flow, we can determine the sustainability of GameStop's stock.

GameStop (NYSE:GME), plagued by the fears surrounding bricks and mortar retail, saw a recent drop in its share price. The drop gave the video game retailer a dividend yield over 7%, but is it sustainable?

Disclosure: I am/we are long GME.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.