Paramount Global sets quarterly cash dividend at $0.05 per share

NEW YORK - Paramount Global (NASDAQ: PARA, PARAA) has declared a quarterly cash dividend of $0.05 per share for both its Class A and Class B Common Stock, according to a recent press release statement. The dividend is scheduled to be paid on January 2, 2025, to shareholders who are on record as of December 16, 2024.

Paramount Global is recognized as a prominent player in the media, streaming, and entertainment sectors, with a portfolio that includes well-known brands such as CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, and Pluto TV. The company boasts a significant library of television and film titles and offers a range of streaming services and digital video products. Paramount is also involved in production, distribution, and advertising solutions.

The announcement of the dividend comes as part of the company's regular financial activities and reflects its commitment to providing returns to its shareholders. Dividends are a way for companies to distribute a portion of their earnings back to their stockholders and can be an indicator of a company's financial health and stability.

Investors and shareholders of Paramount Global can mark December 16, 2024, as the record date to be eligible for the upcoming dividend payment. This move by the company's Board of Directors is consistent with its policy to reward its investors and maintain a steady stream of dividend payouts.

The information regarding the dividend declaration is based on a press release statement from Paramount Global.

In other recent news, Paramount Global is undergoing significant changes. The company has initiated the second phase of its planned layoffs, aiming for a $500 million reduction in annual costs. This action is part of Paramount Global's strategy for profitability and is nearly complete, with 90% of the planned job cuts executed. Paramount Global is also preparing for its upcoming merger with Skydance Media, a major development for the company.

Moreover, Paramount Global has seen alterations in its stock ratings. Seaport Global Securities has maintained a neutral rating for the company, despite the dissolution of the Bronfman investment group's involvement. On the other hand, Loop Capital reiterated its sell rating on Paramount Global. Meanwhile, Wells Fargo upgraded its rating from 'Underweight' to 'Equal Weight'.

In the financial realm, Paramount Global reported a robust second-quarter performance with a 43% growth in total company adjusted OIBDA and a 46% increase in Paramount+ revenue. The financial impact of the layoffs will be apparent in the company's third-quarter results, with expected charges ranging from $300 million to $400 million.

Edgar Bronfman Jr., a media executive, has proposed a $4.3 billion bid to acquire National Amusements, the company with a controlling interest in Paramount Global. This offer challenges Skydance Media's prior agreement to purchase Paramount Global, potentially triggering a $400 million termination fee.

These are all recent developments, providing crucial information for investors regarding Paramount Global.

InvestingPro Insights

Paramount Global's recent dividend announcement showcases its commitment to rewarding shareholders, a practice the company has maintained for 19 consecutive years. This consistency is a testament to Paramount's financial policies and its ability to generate shareholder value over the long term. Notably, Paramount Global is trading at an attractive Price / Book multiple of just 0.45 as of the last twelve months leading up to Q2 2024, indicating that the stock may be undervalued relative to its book value.

InvestingPro Tips highlight Paramount Global's standing as a prominent player in the Media industry, which is reflected in its diverse portfolio and the breadth of its entertainment offerings. Additionally, the company's net income is expected to grow this year, suggesting potential for improved financial performance which may be of interest to investors looking for growth opportunities.

From a financial data perspective, Paramount Global's market capitalization is currently $6.99 billion, and while the company has experienced some volatility in its stock price movements, its dividend yield stands at 1.9%. Moreover, the company has maintained its dividend payments, reinforcing its commitment to returning value to shareholders.

For those interested in a deeper analysis, there are 13 additional InvestingPro Tips available on InvestingPro, which provide further insights into Paramount Global's financial health, market position, and future outlook. These tips can be accessed by visiting https://www.investing.com/pro/PARA, offering a comprehensive view of the company's investment potential.

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