October 31, 2025 a 07:46 am
NWS: Dividend Analysis - News Corporation
News Corporation presents a modest dividend yield coupled with a stable payout history. While there’s minimal recent growth in dividends, the company maintains financial discipline with a healthy payout ratio, indicating potential for future growth amid a solid financial framework.
Overview
| Attribute | Value |
|---|---|
| Sector | Media & Entertainment |
| Dividend Yield | 0.63% 📉 |
| Current Dividend per Share | 0.33 USD |
| Dividend History | 11 years |
| Last Cut or Suspension | 2021 |
Dividend History
The historical consistency in dividend payments signals stability and reliability, crucial for investor confidence. Regular dividends over 11 years demonstrate News Corporation’s commitment to shareholder returns despite economic cycles.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.20 |
| 2024 | 0.20 |
| 2023 | 0.20 |
| 2022 | 0.20 |
| 2021 | 0.15 |
Dividend Growth
Examining dividend growth rates enables insights into potential future payouts, shedding light on the company's capacity to enhance shareholder value.
| Time | Growth |
|---|---|
| 3 years | 0.1006% 🔄 |
| 5 years | 0% 📉 |
The average dividend growth over 5 years is 0%, indicating steady but slow growth. This stability offers a degree of safety but also hints at limited upside potential without strategic growth initiatives.
Payout Ratio
Payout ratios are critical for gauging payout sustainability, providing a lens on financial health and capital allocation strategies.
| Key Figure | Ratio |
|---|---|
| EPS-based | 14.03% 📉 |
| Free cash flow-based | 22.78% 🔄 |
With a conservative EPS payout ratio of 14.03% and a stable FCF-based ratio of 22.78%, News Corporation exhibits a balanced approach to sustaining dividends without compromising reinvestment priorities.
Cashflow & Capital Efficiency
Understanding cash flow dynamics and capital efficiency reveals the company's operational health, directing attention to its strategic capital deployment.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 5.22% | 3.74% | 2.93% |
| Earnings Yield | 1.31% | 1.65% | 6.06% |
| CAPEX to Operating Cash Flow | 45.70% | 45.17% | 41.62% |
| Stock-based Compensation to Revenue | 0.93% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 54.30% | 54.83% | 58.38% |
A cautious yet effective capital strategy is reflected by the improving free cash flow ratios, which underscore operational efficiency and prudent fiscal management.
Balance Sheet & Leverage Analysis
Assessing balance sheet strength and leverage ratios highlights financial stability and potential risks associated with debt loads.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 0.52% | 0.50% | 0.34% |
| Debt-to-Assets | 24.86% | 24.29% | 18.96% |
| Debt-to-Capital | 34.28% | 33.29% | 25.10% |
| Net Debt to EBITDA | 1.92 | 1.53 | 0.34 |
| Current Ratio | 1.28 | 1.43 | 1.84 |
| Quick Ratio | 1.18 | 1.33 | 1.72 |
| Financial Leverage | 2.10 | 2.05 | 1.77 |
Declining debt ratios and improving liquidity metrics signify enhanced financial robustness, lowering potential risks and fortifying capital adequacy.
Fundamental Strength & Profitability
The analysis of core profitability metrics offers insights into the company’s strategic execution and competitive positioning.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 1.85% | 3.28% | 13.45% |
| Return on Assets | 0.88% | 1.59% | 7.61% |
| Return on Invested Capital | 2.92% | 3.78% | 5.16% |
| Net Margin | 1.51% | 2.64% | 13.96% |
| EBIT Margin | 6.82% | 6.26% | 11.31% |
| EBITDA Margin | 12.52% | 13.53% | 16.74% |
| Gross Margin | 40.90% | 100% | 100% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Strengthening profitability ratios and notable ROI metrics reveal optimal resource utilization, underscoring a competitive edge in financial performance.
Price Development
Dividend Scoring System
| Criterion | Score /5 | Visualizer |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 4 | |
| Dividend Growth | 2 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 27 / 40
Rating
In summary, News Corporation demonstrates sound financial stability with a conservative payout structure, suggesting potential for long-term resilience. However, limited growth in dividends could signal an opportunity for strategic adjustments to bolster investor returns.