Saga Communications declares quarterly dividend

Published 05/02/2025, 22:14
Saga Communications declares quarterly dividend

GROSSE POINTE FARMS, Mich. - Saga Communications, Inc. (NASDAQ:SGA) has announced a quarterly cash dividend of $0.25 per share, payable on March 7, 2025, to shareholders of record as of February 18, 2025. The upcoming dividend distribution will total approximately $1.6 million, leveraging the company’s cash reserves. According to InvestingPro data, the company maintains an impressive 28.37% dividend yield and currently trades below its Fair Value, suggesting potential upside for investors.

This recent declaration continues Saga’s practice of returning value to its shareholders, with around $137 million in dividends paid out since 2012. InvestingPro analysis reveals the company has maintained dividend payments for 13 consecutive years, with a P/B ratio of 0.48, indicating strong value potential. The company has expressed its intention to maintain regular quarterly dividends and potentially offer variable dividends, in line with its policy aimed at balancing financial stability, shareholder returns, and strategic growth.

Saga’s approach to capital allocation includes the potential for special dividends and stock buybacks, though any future actions in this regard will be subject to the discretion of its Board of Directors. Decisions will be based on various factors, including the company’s financial performance, cash needs, and future prospects.

The media firm, known for its portfolio of 82 FM and 32 AM radio stations, as well as 79 metro signals across 28 markets, is also exploring growth avenues adjacent to its core radio business, such as digital, e-commerce, and non-traditional revenue streams.

It is important to note that the information provided is based on a press release statement and that future dividends and stock buybacks are not guaranteed, as they depend on the company’s ongoing financial health and market conditions.

In other recent news, Saga Communications, a broadcasting company, declared a quarterly cash dividend of $0.25 per share, totaling an approximate payment of $1.6 million. This move aligns with the company’s ongoing practice of returning value to shareholders, having paid out around $135 million in dividends since 2012.

On the earnings front, Saga Communications reported a 3.5% decrease in net revenue to $28.1 million in the third quarter of 2024, with net income standing at $1.3 million. Despite these challenges, the company saw an increase in political revenue and is adapting its strategy to include "blended advertising," which combines radio and digital advertising efforts.

However, the company anticipates a softer performance in the fourth quarter, expecting low to mid-single-digit declines. The company’s operating expenses are projected to rise by 3% to 5% due to investments and inflationary pressures.

These recent developments in Saga Communications indicate a strategic emphasis on shareholder returns and a shift towards blended advertising amidst economic headwinds. The company’s future dividends and stock buybacks will be guided by its financial health, cash requirements, and other relevant considerations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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