Nexstar Media Group Inc's Dividend Analysis
Assessing the Upcoming Dividend and Financial Health of Nexstar Media Group Inc
Nexstar Media Group Inc(NASDAQ:NXST) recently announced a dividend of $1.69 per share, payable on 2024-02-23, with the ex-dividend date set for 2024-02-08. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Nexstar Media Group Inc's dividend performance and assess its sustainability.
What Does Nexstar Media Group Inc Do?
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Nexstar Media Group Inc is the largest television station owner/operator in the United States, with 200 stations in 116 markets. Of its 200 full-power stations, 155 are affiliated with the four national broadcasters: CBS, Fox, NBC, and ABC. The 2019 merger with Tribune made Nexstar the top broadcast affiliate for both Fox and CBS as well as the number-two partner for NBC and number three for ABC. The firm has networks in 12 of the top 20 television markets and reaches over 68% of U.S. TV households. Nexstar also owns NewsNation (formerly WGN), a nationwide pay-television network, 75% of The CW, and a 31% stake in Food Network and Cooking Channel.
A Glimpse at Nexstar Media Group Inc's Dividend History
Nexstar Media Group Inc has maintained a consistent dividend payment record since 2013, distributing dividends on a quarterly basis. The stock is listed as a dividend achiever, a prestigious status awarded to companies that have increased their dividend each year for at least the past 11 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Nexstar Media Group Inc's Dividend Yield and Growth
Nexstar Media Group Inc currently has a 12-month trailing dividend yield of 3.10% and a 12-month forward dividend yield of 3.91%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Nexstar Media Group Inc's annual dividend growth rate was 26.00%, which decreased slightly to 24.20% per year when extended to a five-year horizon. Based on Nexstar Media Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Nexstar Media Group Inc stock as of today is approximately 9.16%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. As of 2023-09-30, Nexstar Media Group Inc's dividend payout ratio is 0.35, indicating a healthy balance between distributing earnings and retaining funds for future growth and downturns. Nexstar Media Group Inc's profitability rank of 10 out of 10 as of 2023-09-30 suggests strong profitability prospects, with the company reporting net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. Nexstar Media Group Inc's growth rank of 10 out of 10 indicates a strong growth trajectory relative to competitors. The company's revenue per share and 3-year revenue growth rate indicate a robust revenue model, with an average annual increase of 26.90%, outperforming approximately 90.97% of global competitors. The 3-year EPS growth rate shows earnings increasing by approximately 78.70% per year on average, surpassing about 94.27% of global competitors. Lastly, the 5-year EBITDA growth rate of 27.50% outperforms approximately 82.38% of global competitors.
Next Steps
Considering Nexstar Media Group Inc's consistent dividend payments, robust dividend growth rate, prudent payout ratio, strong profitability, and impressive growth metrics, the company presents a compelling case for value investors seeking stable dividend income with growth potential. As the media landscape continues to evolve, Nexstar Media Group Inc's strategic position and financial health suggest it is well-equipped to navigate the industry's challenges and capitalize on opportunities. Investors may find Nexstar Media Group Inc an attractive addition to a diversified portfolio focused on long-term income and growth. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
