Nexstar boosts dividend by 10% amid strong cash flow

Published 29/01/2025, 13:10
Nexstar boosts dividend by 10% amid strong cash flow

While Nexstar has expressed intentions to continue paying regular quarterly dividends, all future dividends will be subject to quarterly review and declaration by the Board of Directors.Nexstar Media Group (NASDAQ:NXST) owns America’s largest local television broadcasting group, with 200 owned or partner stations in 116 U.S. markets, reaching approximately 220 million people. Its portfolio includes The CW network, NewsNation, Antenna TV, Rewind TV, and a significant stake in TV Food Network. Nexstar’s digital assets, including local TV station websites and NewsNationNow.com, rank among the top U.S. digital news and information properties. The company trades at an attractive P/E ratio of 9.0 and maintains a "GOOD" Financial Health score according to InvestingPro, which offers comprehensive analysis and 8 additional ProTips for this stock. The company trades at an attractive P/E ratio of 9.0 and maintains a "GOOD" Financial Health score according to InvestingPro, which offers comprehensive analysis and 8 additional ProTips for this stock.

This move marks the twelfth consecutive year the Irving-based company has raised its cash dividend, signaling a robust financial performance characterized by significant free cash flow. According to Nexstar’s Founder, Chairman, and CEO Perry Sook, the increase is a testament to the company’s diligent capital allocation and a commitment to delivering value to its shareholders. InvestingPro data reveals the company maintains a strong 18% free cash flow yield and has been actively buying back shares, demonstrating its commitment to shareholder returns.

Nexstar’s strategy for enhancing shareholder value encompasses not only dividend growth but also share repurchases, debt reduction, and potential mergers and acquisitions for growth. The company’s leadership in the industry and operational efficiencies have been pivotal in its ability to increase dividends consistently.

While Nexstar has expressed intentions to continue paying regular quarterly dividends, all future dividends will be subject to quarterly review and declaration by the Board of Directors.

Nexstar Media Group owns America’s largest local television broadcasting group, with 200 owned or partner stations in 116 U.S. markets, reaching approximately 220 million people. Its portfolio includes The CW network, NewsNation, Antenna TV, Rewind TV, and a significant stake in TV Food Network. Nexstar’s digital assets, including local TV station websites and NewsNationNow.com, rank among the top U.S. digital news and information properties.

This dividend announcement is based on a press release statement from Nexstar Media Group, Inc.

In other recent news, Nexstar Media Group, Inc. has reported significant developments. The media company recently announced the renewal of NBC Television Network affiliations for 33 US stations, ensuring NBC content continues to reach over 14 million U.S. television households. This renewal underscores the value of network-affiliate partnerships in the broadcasting industry.

In financial updates, Nexstar reported a record third-quarter net revenue of $1.37 billion, marking a 20.7% increase from the previous year. This growth was largely driven by a rise in political advertising revenue, which totaled $491 million year-to-date, and a substantial increase in distribution revenue reaching a record of $719 million.

However, the company reported a 4.5% decline in nonpolitical advertising and a decrease in national revenue. Despite these areas of decline, Nexstar remains optimistic about future growth, particularly in political advertising.

In addition to these developments, Nexstar returned a substantial $590 million to shareholders through dividends and share repurchases, while reducing its debt by $146 million and outstanding shares by 6.3%. These recent developments indicate a strong financial performance for Nexstar as it continues to focus on returning value to shareholders and reducing debt.

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