July 07, 2025 a 11:31 am
NWSA: Dividend Analysis - News Corporation
News Corporation presents a mixed bag in terms of its dividend profile. With a modest yield of 0.75%, the company offers consistent dividends over the past 11 years. However, growth appears stagnant with no increase in three or five-year growth rates. The payout ratios indicate sustainability, but room for growth would likely attract more dividend-focused investors.
📊 Overview
News Corporation operates in the dynamic media sector, where maintaining consumer engagement is crucial. The current dividend yield may seem modest, but the company's consistent history reflects underlying financial stability.
| Key Metrics | Details |
|---|---|
| Sector | Media |
| Dividend Yield | 0.75% |
| Current Dividend Per Share | 0.30 USD |
| Dividend History | 11 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The dividend history shows strong consistency, which is crucial for investors looking for dependable income streams.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.10 |
| 2024 | 0.20 |
| 2023 | 0.20 |
| 2022 | 0.20 |
| 2021 | 0.20 |
📈 Dividend Growth
While dividend consistency is notable, growth remains absent. This stagnation can be a deterrent for growth-focused dividend investors.
| Time | Growth |
|---|---|
| 3 years | 0% |
| 5 years | 0% |
The average dividend growth is 0% over 5 years. This shows no dividend growth, impacting its attractiveness to investors seeking yield increase.
🔍 Payout Ratio
The payout ratio is a critical metric for assessing dividend sustainability. The EPS-based payout ratio of 35.07% and FCF-based 22.18% are well within safe limits, indicating a balance between earnings and dividend payments.
| Key Figure | Ratio |
|---|---|
| EPS-based | 35.07% |
| Free Cash Flow-based | 22.18% |
These ratios suggest prudent dividend distribution, enabling the company to retain earnings for further investment opportunities.
📊 Cashflow & Capital Efficiency
Evaluating the cash flow and capital efficiency is essential to gauge the company's capacity to reinvest and sustain operations.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.86% | 5.28% | 9.25% |
| Earnings Yield | 1.71% | 1.33% | 6.74% |
| CAPEX to Operating Cash Flow | 45.17% | 45.70% | 36.85% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 54.83% | 54.30% | 63.15% |
The cash flow ratios indicate sufficient cash generation relative to expenses and commitments, highlighting healthy operational management.
🏦 Balance Sheet & Leverage Analysis
A robust balance sheet underpins long-term stability, providing insights into leverage and financial health.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 49.91% | 52.17% | 50.54% |
| Debt-to-Assets | 24.29% | 24.86% | 24.13% |
| Debt-to-Capital | 33.29% | 34.28% | 33.57% |
| Net Debt to EBITDA | 1.53 | 2.07 | 1.35 |
| Current Ratio | 1.43 | 1.28 | 1.16 |
| Quick Ratio | 1.33 | 1.18 | 1.07 |
| Financial Leverage | 2.05 | 2.10 | 2.09 |
The leverage ratios reflect a balanced approach to debt, with moderate usage, keeping the financial liabilities at a manageable level.
🔍 Fundamental Strength & Profitability
Evaluating the profitability measures and fundamental strength provides insights into the business’s efficiency and financial performance.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 3.28% | 1.85% | 7.58% |
| Return on Assets | 1.59% | 0.88% | 3.62% |
| Margins: Net | 2.64% | 1.51% | 6.00% |
| EBIT | 6.26% | 4.19% | 8.83% |
| EBITDA | 13.53% | 11.58% | 16.66% |
| Gross | 100% | 40.90% | 44.03% |
| R&D to Revenue | 0% | 0% | 0% |
News Corporation's profitability metrics suggest sound operational efficiency, although varying return metrics indicate potential volatility.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 4 | |
| Dividend Growth | 1 | |
| Payout Ratio | 4 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 24/40
⚠️ Rating
News Corporation's dividends display solid stability but lack growth incentives. The conservative payout and sustainable metrics may appeal to risk-averse investors, yet growth-seeking individuals might find the no-growth rate concerning. It could be considered for balanced portfolios focusing on income dependability more than growth.