Nexstar Media Group Raises Quarterly Cash Dividend by 25% to $1.69 Per Share
- 25% increase in quarterly cash dividend to $1.69 per share
- Eleventh consecutive annual cash dividend increase
- 3.8% annualized yield based on the closing stock price on January 25, 2024
- Strong free cash flow generation
- Commitment to delivering increased returns to shareholders
- Confidence in business model and growth opportunities
- None.
Insights
The announcement by Nexstar Media Group, Inc. regarding a 25% increase in its quarterly cash dividend to $1.69 per share signifies a robust financial position and a commitment to shareholder returns. This strategic move is likely a reflection of the company's strong free cash flow generation, which is a critical indicator of financial health and operational efficiency. Free cash flow is the cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets. A consistent increase in dividends over eleven years demonstrates management's confidence in the company's stability and growth prospects.
From an investor's perspective, the increased dividend yield, which now stands at an annualized rate of 3.8% based on the closing stock price on January 25, 2024, positions Nexstar as a potentially attractive investment for income-seeking shareholders. Moreover, this development may also be indicative of the company's prudent capital allocation strategy that balances reinvestment in the business with rewarding shareholders. However, investors should also consider the sustainability of such dividend increases, as they depend on the company's ongoing ability to generate sufficient free cash flow.
The media industry, where Nexstar operates, is highly competitive and subject to rapid technological changes. Nexstar's dividend increase can be interpreted as a signal to the market of its competitive positioning and optimism about future growth opportunities. A company's ability to consistently raise dividends is often seen as a sign of strength and may enhance its reputation among investors. It could also be a response to investor expectations in the media sector, where companies are often evaluated based on their ability to provide steady returns amidst industry disruption.
However, it's important to monitor how the market reacts to this news. While a dividend increase can lead to a positive short-term stock price movement, long-term price performance will depend on the company's ability to adapt to industry trends, such as shifts in consumer media consumption and advertising revenue patterns. Investors should also be aware that while dividend payments are a sign of financial health, they are not a guarantee of future performance and should be evaluated alongside other financial metrics and strategic initiatives.
Dividend Represents a
Based on the Closing Stock Price on January 25, 2024
Increase Marks Eleventh Consecutive Annual Cash Dividend Increase
Perry Sook, Nexstar Media Group’s Founder, Chairman and Chief Executive Officer stated, “Nexstar’s strong free cash flow generation continues to support our long-standing commitment to delivering increased returns to our shareholders. The eleventh consecutive annual increase in our cash dividend, combined with our opportunistic share repurchase activity, reflects our continued confidence in Nexstar’s business model, competitive positioning and growth opportunities.”
While the Company intends to pay regular quarterly cash dividends for the foreseeable future, all subsequent dividends will be reviewed quarterly and declared by the Board of Directors at its discretion.
About Nexstar Media Group, Inc.
Nexstar Media Group, Inc. (NASDAQ: NXST) is a leading diversified media company that produces and distributes engaging local and national news, sports and entertainment content across its television and digital platforms, including more than 300,000 hours of programming produced annually by its business units. Nexstar owns America’s largest local broadcasting group comprised of top network affiliates, with 200 owned or partner stations in 116 U.S. markets reaching 212 million people. Nexstar’s national television properties include The CW, America’s fifth major broadcast network, NewsNation, America’s fastest-growing national cable news network, popular entertainment multicast networks Antenna TV and Rewind TV, and a
View source version on businesswire.com: https://www.businesswire.com/news/home/20240126808682/en/
Investor:
Lee Ann Gliha
Executive Vice President and Chief Financial Officer
Nexstar Media Group, Inc.
972/373-8800
Joseph Jaffoni or Jennifer Neuman
JCIR
212/835-8500 or nxst@jcir.com
Media:
Gary Weitman
EVP and Chief Communications Officer
972/373-8800
gweitman@nexstar.tv
Source: Nexstar Media Group, Inc.
FAQ
What is the new quarterly cash dividend for Nexstar Media Group, Inc. (NXST)?
When is the dividend payable to shareholders of record?
How does the increase in cash dividend impact the annualized yield based on the closing stock price on January 25, 2024?
Who emphasized the strong free cash flow generation and commitment to delivering increased returns to shareholders?
How many consecutive annual cash dividend increases has Nexstar Media Group announced?
