April 25, 2025 a 12:46 pm
PARA: Dividend Analysis - Paramount Global
Paramount Global presents a complex dividend profile, indicating considerable challenges in maintaining a consistent dividend strategy. The current yield is relatively modest, and the history suggests a pattern of volatile payments and reductions over the past years. Investors should approach this stock with a careful evaluation of its financial health and the sustainability of its payouts.
📊 Overview
The overview of Paramount Global presents various critical dividend metrics. As a media and entertainment company, understanding its dividend yield and payout history is vital for assessing the potential for investor returns.
| Metric | Value |
|---|---|
| Sector | Media & Entertainment |
| Dividend Yield | 1.71% |
| Current Dividend Per Share | 0.044 USD |
| Dividend History | 20 years |
| Last Cut or Suspension | None |
📉 Dividend History
Paramount Global's dividend history underscores a fluctuating dividend payment strategy, reflecting industry challenges and internal fluctuations. Regular dividends can attract long-term investors, but the indicative past cuts highlight a need for caution.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.05 |
| 2024 | 0.20 |
| 2023 | 0.39 |
| 2022 | 0.96 |
| 2021 | 0.96 |
📈 Dividend Growth
The growth analysis of Paramount Global's dividends over a multi-year span reveals significant reductions. A strategic plan to enhance dividend growth is crucial for attracting and retaining investors.
| Time | Growth |
|---|---|
| 3 years | -40.72% |
| 5 years | -23.83% |
The average dividend growth is -23.83% over 5 years. This shows negative and declining dividend growth.
🗣️ Payout Ratio
An analysis of Paramount Global's payout ratios reveals potential sustainability issues in maintaining its dividend policy.
| Key Figure | Ratio |
|---|---|
| EPS-based | -48.12% |
| Free Cash Flow-based | 6.37% |
The EPS-based payout is negative, which suggests unsustainable earnings, whereas a positive FCF-based ratio indicates the potential to cover dividends from cash flows.
Cashflow & Capital Efficiency
Analyzing cash flow metrics shows how efficiently Paramount Global uses its capital to generate income, a key factor for dividend safety.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 7.04% | 1.57% | -1.27% |
| Earnings Yield | -89.12% | -6.48% | 10.08% |
| CAPEX to Operating Cash Flow | 34.97% | 69.05% | 163.47% |
| Stock-based Compensation to Revenue | 0.84% | 0.60% | 0.57% |
| Free Cash Flow / Operating Cash Flow Ratio | 65.03% | 30.95% | -63.47% |
Despite volatile earnings yields, the cash flow yield provides some reliability in dividend coverage. Significantly high CAPEX ratios raise concerns about capital spending effectiveness.
Balance Sheet & Leverage Analysis
Understanding Paramount Global's balance sheet is critical to evaluating its financial stability and leverage.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.953 | 0.704 | 0.750 |
| Debt-to-Assets | 0.337 | 0.296 | 0.296 |
| Debt-to-Capital | 0.488 | 0.413 | 0.429 |
| Net Debt to EBITDA | -2.62 | 157.62 | 5.53 |
| Current Ratio | 1.302 | 1.316 | 1.227 |
| Quick Ratio | 1.154 | 1.169 | 1.107 |
| Financial Leverage | 2.829 | 2.377 | 2.535 |
While leverage ratios indicate a moderate debt level, a considerable net debt to EBITDA in recent years reflects potential challenges in mitigating financial obligations.
Fundamental Strength & Profitability
Assessing Paramount Global's fundamentals provides insight into operational efficiency and profitability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | -0.379 | -0.027 | 0.048 |
| Return on Assets | -0.134 | -0.011 | 0.019 |
| Margins: Net | -0.212 | -0.021 | 0.037 |
| EBIT | -0.182 | -0.011 | 0.073 |
| EBITDA | -0.169 | 0.003 | 0.086 |
| Gross | 0.335 | 0.245 | 0.342 |
| Research & Development to Revenue | 0 | 0 | 0 |
Steady gross margins relative to negative net margins indicate efficiency at the manufacturing level but struggles downstream with profitability.
Price Development
✅ Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 1 | |
| Dividend Growth | 1 | |
| Payout Ratio | 2 | |
| Financial Stability | 2 | |
| Dividend Continuity | 3 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 2 |
Overall Dividend Score: 15/40
🗣️ Rating
Paramount Global's dividend strategy requires a cautious approach due to its inconsistent history and recent negative growth. Potential investors may find the current yield insufficient to justify the dividend risk, given current financial metrics. The company's capability to sustain or grow dividends remains uncertain, requiring close monitoring of its ability to improve profitability and cash flow coverage.