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.
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 |
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.
| Year | Dividend Per Share |
|---|---|
| 2026 | 0.1 |
| 2025 | 0.2 |
| 2024 | 0.2 |
| 2023 | 0.2 |
| 2022 | 0.2 |
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.
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.
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.
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.
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.
| 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 |
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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