November 23, 2025 a 07:30 am
NWSA: Dividend Analysis - News Corporation
News Corporation's dividend profile presents a stable but modest yield, reflecting a cautious payout strategy. With a long history of 11 consecutive years without dividend cuts, its resilience is noteworthy despite the absence of recent growth. Investors might find value in its conservative approach, ensuring dividends are sustainable amidst varied market conditions.
📊 Overview
The following is a detailed breakdown of key dividend metrics for News Corporation:
| Metric | Value |
|---|---|
| Sector | Media & Entertainment |
| Dividend Yield | 0.70% |
| Current Dividend Per Share | 0.33 USD |
| Dividend History | 11 years |
| Last Cut or Suspension | None |
📈 Dividend History
News Corporation has maintained its dividend payouts consistently over the years, contributing to investor confidence. A stable dividend history is critical as it reflects the company's ability to generate and share profit consistently.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.20 |
| 2024 | 0.20 |
| 2023 | 0.20 |
| 2022 | 0.20 |
| 2021 | 0.20 |
🗣️ Dividend Growth
The growth of dividends is a pivotal factor for investors seeking compounding returns. Unfortunately, News Corporation has shown no growth over the last three and five years, reflecting a period of dividend stagnation.
| Time | Growth |
|---|---|
| 3 years | 0% |
| 5 years | 0% |
The average dividend growth is 0% over 5 years. This shows no dividend growth during this period.
💡 Payout Ratio
Payout ratios help assess the sustainability of dividends by comparing them to a company's earnings and free cash flow.
| Key Figure | Ratio |
|---|---|
| EPS-based | 15.76% |
| Free cash flow-based | 24.39% |
The payout ratio of 15.76% (EPS) and 24.39% (FCF) suggest a very conservative approach, leaving ample room for future dividend commitments or re-investment opportunities.
💵 Cashflow & Capital Efficiency
Strong cash flow and efficient capital allocation are crucial for maintaining dividend payments.
| Key Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.31% | 3.86% | 5.28% |
| Earnings Yield | 6.99% | 1.71% | 1.33% |
| CAPEX to Operating Cash Flow | 34.17% | 45.17% | 45.70% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 64.11% | 54.83% | 54.30% |
These metrics exhibit a relatively stable free cash flow with conservative capital expenditure, indicating a robust capacity to support dividend payments and strategic initiatives.
📉 Balance Sheet & Leverage Analysis
Analyzing leverage and balance sheet ratios paints a picture of financial stability and risk exposure.
| Ratio | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.34 | 0.50 | 0.52 |
| Debt-to-Assets | 0.19 | 0.24 | 0.25 |
| Debt-to-Capital | 0.25 | 0.33 | 0.34 |
| Net Debt to EBITDA | 0.38 | 1.69 | 2.18 |
| Current Ratio | 1.84 | 1.43 | 1.28 |
| Quick Ratio | 1.72 | 1.33 | 1.18 |
| Financial Leverage | 1.77 | 2.05 | 2.10 |
Despite increasing financial leverage, the consistent current and quick ratios suggest healthy liquidity management practices, which might act as a buffer against economic turbulence.
🚀 Fundamental Strength & Profitability
Profitability ratios are crucial for understanding how well a company generates profit relative to its equity, assets, and capital employed.
| Metrics | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 13.45% | 3.28% | 1.85% |
| Return on Assets | 7.61% | 1.59% | 0.88% |
| Net Margin | 13.96% | 3.22% | 1.86% |
| EBIT Margin | 11.31% | 9.71% | 8.41% |
| EBITDA Margin | 16.74% | 15.04% | 13.59% |
| Gross Margin | 100% | 100% | 100% |
Profitability has improved notably over the years, especially return on equity which has surged, indicating effective utilization of shareholder capital.
🏦 Price Development
🔍 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 4 | |
| Dividend growth | 1 | |
| Payout ratio | 5 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
✅ Rating
News Corporation's dividend profile indicates a secure yet unremarkable yield, driven by prudent financial management and stability in payouts. However, the lack of growth could deter investors seeking capital appreciation through dividends. In light of its financial health and conservative fiscal policies, News Corporation rates as a moderate dividend investment, more suited to risk-averse portfolios.