Discover the communication services stocks with the biggest dividend increases last quarter, Q1 2023
Dividends
June 25, 2023
Telephone and Data Systems, Inc. (TDS), a leading telecommunications services provider, has declared first quarter 2023 dividends on its Common Shares, Series A Common Shares, Series UU Preferred Shares, and Series VV Preferred Shares. TDS will be paying a quarterly dividend of $0.185 per Common Share and Series A Common Share, $414.0625 per share on its 6.625% Series UU Preferred shares, and $375.0000 per share on its 6.000% Series VV Preferred shares. The dividend increase is likely due to TDS's strong financial performance, market position, and positive industry trends, reflecting the company's stability and growth potential.
The New York Times Co (NYT) reported a strong fourth-quarter FY22 performance, with sales growing by 12.3% YoY to $667.54 million, surpassing the consensus estimate of $646.44 million. Notably, revenue from subscriptions rose by 17.9%, while advertising grew by 1.4%. The New York Times experienced significant growth in digital-only subscription revenue, which increased by 31% YoY to $269.2 million, and digital advertising revenue rose by 0.6% to $111.9 million. The positive financial results led to an expansion of the adjusted operating margin by 280 basis points to 21.2%. With 9.55 million paid subscribers in the quarter compared to 7.58 million the previous year, The New York Times's adjusted EPS of $0.59 exceeded the analyst consensus of $0.43. As a result of this strong performance, the board approved a 22.2% increase in the dividend per share to $0.11 and authorized a buyback of up to $250 million. Looking ahead, The New York Times foresees a 6% to 9% growth in total subscription revenues for Q1, with digital-only subscription revenue expected to grow by 13% to 16%. The positive financial indicators, including the increased dividend and The New York Times's commitment to returning at least 50% of free cash flow to shareholders, indicate a promising outlook for New York Times Co (NYT) and its dividend prospects.
Nexstar Media Group, Inc. recently announced a development for its shareholders. Nexstar Media’s Board of Directors has approved a 50% increase in the quarterly cash dividend to $1.35 per share, effective from the first quarter of 2023. This decision reflects Nexstar's strong confidence in its ability to generate substantial free cash flow and its commitment to rewarding shareholders. Perry Sook, the Founder, Chairman, and CEO of Nexstar Media Group, emphasized that this increase surpasses Nexstar Media's historical compound annual dividend growth rate of 25%. Furthermore, he highlighted Nexstar Media's robust free cash flow, which not only enables increased dividends but also supports share repurchases, debt reduction, and the pursuit of strategic opportunities. It is important to note that while Nexstar intends to pay regular quarterly dividends in the future, the declaration and review of subsequent dividends will be at the discretion of the Board of Directors.
Shutterstock, Inc. (SSTK) recently made an exciting announcement regarding its dividend policy. Shutterstock, known for its end-to-end creative solutions that combine innovative technology and storytelling, revealed that its Board of Directors has approved a cash dividend of $0.27 per share of outstanding common stock. This represents a notable increase of approximately 13% compared to the previous quarterly dividend of $0.24 per share. The decision to raise the dividend for the third consecutive year showcases Shutterstock's commitment to driving margin expansion and its confidence in future cash flows. CEO Paul Hennessy expressed his satisfaction in being able to deliver value to stockholders and maintain a strong focus on shareholder returns.
Entravision (EVC), a global advertising solutions, media, and technology company, announced an increase in its quarterly cash dividend to shareholders. The Board of Directors approved a dividend of $0.05 per share for Entravision's Class A, Class B, and Class U common stock, doubling its previous dividend in 2022. This move brings the dividend back to its pre-pandemic level, reflecting Entravision's confidence in its ability to drive sustainable profitable growth. The increased dividend, totaling approximately $4.4 million, highlights Entravision's strong cash position and commitment to delivering value to its shareholders. With a track record of 41 consecutive dividends paid over the past 13 years, Entravision aims to maintain a balanced capital allocation strategy and invest in initiatives that fuel future growth.
Comcast Corporation recently made a significant move by raising its dividend payout to $1.16 per share annually, marking a 7.4% increase from the previous year. Comcast's decision to bolster its dividend likely stems from its robust financial performance and positive outlook.
All data was sourced from LevelFields AI
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