Fox Corporation, a major player in the media industry, offers a blend of entertainment, news, and sports programming. With a consistent dividend history, it reflects moderate but steady growth, appealing to investors seeking long-term value. The following analysis delves into its dividend profile and financials, emphasizing its strengths and potential areas for improvement.
Fox Corporation operates in the Media sector, known for its blend of stable income streams and growth potential. Despite relatively modest dividend yields, Fox's regular dividend payments reflect its commitment to returning value to shareholders.
| Metric | Details |
|---|---|
| Sector | Media |
| Dividend Yield | 1.09% |
| Current Dividend per Share | 0.60 USD |
| Dividend History | 8 years |
| Last Cut/Suspension | None |
Fox Corporation's historical dividend payments demonstrate a commitment to shareholder returns. Consistent dividends over 8 years indicate financial strength, and regular dividends are an encouraging sign.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.28 |
| 2025 | 0.55 |
| 2024 | 0.53 |
| 2023 | 0.51 |
| 2022 | 0.49 |
Understanding dividend growth is crucial because it highlights a company's capacity to increase shareholder returns over time.
| Time | Growth |
|---|---|
| 3 years | 3.93% |
| 5 years | 3.64% |
The average dividend growth is 3.64% over 5 years. This shows moderate but steady dividend growth, appealing for long-term investors.
Payout ratios provide insight into how sustainable a company's dividend payments are, balancing between rewarding shareholders and reinvestment in growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 13.76% |
| Free cash flow-based | 10.56% |
The payout ratio based on EPS is 13.76% and FCF is 10.56%, indicating a healthy balance ensuring the dividend is sustainable without compromising operational funding.
Analyzing cash flow and capital efficiency is crucial for understanding a company's ability to generate cash and efficiently allocate capital for growth and dividends.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 12.57% | 9.84% | 8.52% |
| Earnings Yield | 9.51% | 9.87% | 7.32% |
| CAPEX to Operating Cash Flow | 7.07% | 18.75% | 19.83% |
| Stock-based Compensation to Revenue | 0.83% | 0.64% | 0.50% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.04% | 81.25% | 80.17% |
With robust free cash flow yields and efficient use of capital (evidenced by CAPEX ratios), Fox Corporation maintains a solid financial base to support dividend payments and potential growth investments.
A comprehensive analysis of leverage and liquidity helps assess financial stability and the ability to sustain operations and dividends.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.62 | 0.76 | 0.79 |
| Debt-to-Assets | 0.32 | 0.37 | 0.38 |
| Debt-to-Capital | 0.38 | 0.43 | 0.44 |
| Net Debt to EBITDA | 1.89 | 1.32 | 1.58 |
| Current Ratio | 2.78 | 2.54 | 1.93 |
| Quick Ratio | 2.76 | 2.33 | 1.78 |
| Financial Leverage | 1.94 | 2.05 | 2.11 |
Fox Corporation's leverage ratios indicate a cautious approach to debt management and suggest financial flexibility to withstand economic changes, ensuring steady operations and dividend capacities.
Understanding profitability metrics is critical to evaluating a company's overall financial health and potential to sustain and grow dividends.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 18.92% | 14.01% | 11.94% |
| Return on Assets | 9.76% | 6.83% | 5.67% |
| Net Margin | 13.88% | 10.74% | 8.31% |
| EBIT Margin | 21.25% | 18.95% | 13.98% |
| EBITDA Margin | 23.61% | 20.73% | 16.74% |
| Gross Margin | 33.11% | 100.00% | 100.00% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Fox Corporation showcases strong profitability through consistent returns on equity and assets. However, zero investment in R&D may imply focusing on current operations and potentially missing future innovation opportunities.
| Criteria | Score (out of 5) | Score Bar |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Fox Corporation presents a solid dividend investment opportunity with strong financial management, sustainable payout ratios, and robust cash flow coverage. While the yield may attract those seeking moderate income, its score reflects a generally well-balanced proposition for investors prioritizing stability and growth potential.