December 13, 2025 a 11:31 am
SBAC: Dividend Analysis - SBA Communications Corporation
📊 SBA Communications Corporation presents a compelling dividend profile characterized by steady increases over recent years. The dividend yield of 2.29% offers a moderate income stream for investors. While the historical dividend growth is moderate, the company showcases a strong commitment to dividend continuity. However, the high leverage evident in the debt metrics needs careful consideration.
Overview
📊 SBA Communications Corporation operates within the technology sector, emphasizing robust telecommunications infrastructure. The company has a dividend yield of 2.29%, marking it as a potentially attractive option for yield-seeking investors. The current dividend stands at $3.93 per share, reflecting a disciplined increase over the last 7 years. With no recent dividend cuts or suspensions, the company demonstrates a stable payout strategy.
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend yield | 2.29 % |
| Current dividend per share | 3.93 USD |
| Dividend history | 7 years |
| Last cut or suspension | None |
Dividend History
📉 Monitoring the dividend history is crucial for assessing the reliability and growth capacity of the payouts. SBA Communications has consistently raised its dividends, which is an encouraging sign for potential and current stakeholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 4.44 |
| 2024 | 3.92 |
| 2023 | 3.40 |
| 2022 | 2.84 |
| 2021 | 2.32 |
Dividend Growth
📈 Evaluating the dividend growth rates over 3- and 5-year periods can provide insights into the company's forward trajectory in terms of shareholder distributions. SBA Communications showcases moderate growth which contributes to its attractiveness for long-term investors.
| Time | Growth |
|---|---|
| 3 years | 19.10 % |
| 5 years | 39.58 % |
The average dividend growth is 39.58 % over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
✅ The payout ratio is indicative of the proportion of earnings distributed to shareholders in the form of dividends. Analyzing both EPS and FCF payout ratios provides a comprehensive view of the sustainability of dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 49.27 % |
| Free cash flow-based | 39.11 % |
The EPS-based payout ratio stands at 49.27 %, indicating that the company distributes about half of its earnings as dividends. The FCF-based payout ratio of 39.11 % reflects a conservative approach, providing room for reinvestments and debt reduction.
Cashflow & Capital Efficiency
⚙️ Cash flow analysis is critical to ensure that the company generates sufficient free cash flow to cover its dividends. Additionally, capital efficiency metrics offer insights into how effectively SBA Communications converts revenues into profits and cash.
| Year | Free Cash Flow Yield | Earnings Yield | CAPEX/Operating Cash Flow | Stock Compensation/Revenue | FCF/Operating Cash Flow Ratio |
|---|---|---|---|---|---|
| 2024 | 5.03% | 3.40% | 16.77% | 2.67% | 82.91% |
| 2023 | 4.74% | 1.82% | 15.33% | 3.24% | 84.67% |
| 2022 | 3.60% | 1.51% | 16.27% | 3.79% | 83.73% |
The stable free cash flow yield demonstrates that the company has adequate cash to maintain its dividend while keeping capital expenditures efficiently at moderate levels, contributing positively to shareholder value.
Balance Sheet & Leverage Analysis
💼 A thorough evaluation of the company's balance sheet and leverage metrics is essential for understanding financial stability. These ratios indicate SBA Communications' ability to manage its debt obligations while maintaining liquidity.
| Year | Debt-to-Equity | Debt-to-Assets | Debt-to-Capital | Net Debt/EBITDA | Current Ratio | Quick Ratio | Financial Leverage |
|---|---|---|---|---|---|---|---|
| 2024 | -3.08 | 1.38 | 1.48 | 8.67 | 0.50 | 1.10 | -2.23 |
| 2023 | -2.80 | 1.42 | 1.56 | 7.96 | 0.36 | 0.36 | -1.97 |
| 2022 | -2.88 | 1.43 | 1.53 | 8.97 | 0.69 | 0.69 | -2.01 |
The high leverage ratios suggest significant debt levels, which could pose risks in adverse market conditions; however, the company's quick ratio indicates a favorable liquidity position for short-term obligations.
Fundamental Strength & Profitability
📊 Profitability and fundamental strengths determine the overall financial health and ability of the company to sustain operations and growth. Here, SBA Communications shows distinct strengths tempered by certain constraints.
| Year | Return on Equity | Return on Assets | Net Margin | EBIT Margin | EBITDA Margin | Gross Margin | R&D/Revenue |
|---|---|---|---|---|---|---|---|
| 2024 | -14.67% | 6.56% | 27.97% | 56.91% | 66.97% | 77.32% | 0% |
| 2023 | -9.70% | 4.93% | 18.51% | 39.65% | 66.07% | 76.61% | 0% |
| 2022 | -8.75% | 4.36% | 17.52% | 36.77% | 63.64% | 73.59% | 0% |
Despite negative returns on equity, the company maintains solid net and EBITDA margins, underscoring its operational efficiency and cost management capabilities.
Price Development
Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 2 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 2 |
Overall Score: 26 out of 40
Rating
🏆 SBA Communications Corporation displays a strong dividend framework sustained by moderate growth and stable payouts. Despite high leverage, its robust FCF and margins support a continual dividend strategy. The company is recommended for investors focused on yield with a tolerance for leverage-related risks.