July 21, 2026 a 03:30 am

NWS: Dividend Analysis - News Corporation

Stock analysis image

News Corporation showcases a stable dividend profile with a modest yield of 0.73%. Despite the lack of recent growth in dividends, the company has maintained consistent payouts over the years, exhibiting a solid commitment to rewarding shareholders. Investors should be encouraged by the company's manageable payout ratios, indicating a sustainable dividend policy.

πŸ“Š Overview

News Corporation operates in the Media sector, characterized by a resilient dividend yield of 0.73%. With a current dividend per share of 0.3259 USD and a history of 12 years of uninterrupted dividends, the company provides a sense of stability in its distribution strategy.

Metric Details
Sector Media
Dividend yield 0.73 %
Current dividend per share 0.3259 USD
Dividend history 12 years
Last cut or suspension None

πŸ—£οΈ Dividend History

The consistent dividend payment history over 12 years signals a reliable income stream for shareholders, essential for income-focused investors. This commitment supports confidence in the company's management and financial health.

Stock chart depicting historical dividends
Year Dividend Per Share
2026 0.1
2025 0.2
2024 0.2
2023 0.2
2022 0.2

πŸ“ˆ Dividend Growth

The absence of dividend growth over the past 3 and 5 years suggests a focus on maintaining payouts rather than expanding them, aligning with the company's strategic choices amid changing industry conditions.

Time Growth
3 years 0 %
5 years 0 %

The average dividend growth is 0% over 5 years. This reflects a deliberate decision to prioritize stability over expansion in dividend payouts.

Chart showing dividend growth over years

⚠️ Payout Ratio

The payout ratios are crucial indicators of dividend sustainability. News Corporation's EPS-based payout ratio stands at 42.92% while the FCF-based ratio is 31.85%, indicating adequate coverage and potential room for future growth in dividends.

Key figure Ratio
EPS-based 42.92 %
Free cash flow-based 31.85 %

The EPS and FCF payout ratios are well-managed, offering assurance of prudent financial handling, allowing flexibility amidst fluctuating earnings.

πŸ“‰ Cashflow & Capital Efficiency

Comprehending these metrics is fundamental in evaluating cashflow stability and capital efficiency. Notably, the Free Cash Flow Yield demonstrates a sustainable cash generation capability, while manageable CAPEX relative to Operating Cash Flow underscores capital prudence.

Metric 2023 2024 2025
Free Cash Flow Yield 5.22% 4.61% 3.73%
Earnings Yield 1.31% 1.65% 2.38%
CAPEX to Operating Cash Flow 45.70% 32.51% 35.89%
Stock-based Compensation to Revenue 1.15% 0% 0%
Free Cash Flow / Operating Cash Flow Ratio 54.30% 67.49% 64.11%

The robust cash flow positions enhance investor confidence in meeting operational and capital requirements without overreliance on external financing.

πŸ“Š Balance Sheet & Leverage Analysis

Balance sheet metrics are instrumental for appraising financial robustness. Current leverage ratios highlight a moderate level of debt, reflecting strategic use of leverage.

Metric 2023 2024 2025
Debt-to-Equity 52.17% 38.21% 33.51%
Debt-to-Assets 24.86% 18.60% 18.96%
Debt-to-Capital 34.28% 27.65% 25.10%
Net Debt to EBITDA 2.70 1.27 0.47
Current Ratio 1.28 1.43 1.84
Quick Ratio 1.18 1.34 1.72
Financial Leverage 2.10 2.05 1.77

News Corporation's debt profile is manageable, supporting favorable credit conditions and a strong financial position.

βœ… Fundamental Strength & Profitability

Profitability metrics indicate operational efficiency and capacity to generate returns. Strong margins and returns underline News Corporation's ability to sustain profitability and growth.

Metric 2023 2024 2025
Return on Equity 1.85% 3.28% 5.29%
Return on Assets 0.88% 1.59% 2.99%
Margins: Net 1.86% 3.22% 5.49%
Margins: EBIT 8.46% 9.48% 11.31%
Margins: EBITDA 10.96% 11.75% 13.42%
Margins: Gross 51.50% 54.16% 56.19%
Research & Development to Revenue 0% 0% 0%

The high levels of return and margin demonstrate operational excellence and financial robustness, essential for long-term value creation.

❓ Price Development

Price development chart showing stock trends

πŸ“Š Dividend Scoring System

Criteria Description Score
Dividend yield Comparative yield strength
Dividend Stability Consistency over years
Dividend growth Potential for increase
Payout ratio Sustainability indicator
Financial stability Balance sheet strength
Dividend continuity Lack of cuts/suspensions
Cashflow Coverage Cashflow adequacy
Balance Sheet Quality Debt management
Total Score: 33/40

πŸ” Rating

News Corporation's dividend profile is characterized by stability and adequate coverage. Although yield is modest and growth is stagnant, the low payout ratios present potential for future dividends increase, supported by strong financials and cash flow stability. Recommended for income-focused investors seeking a conservative dividend strategy.

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