A deep dive into the dividend history, yield, and growth rates of Comcast Corp (CMCSA, Financial)
Comcast Corp (CMCSA) recently announced a dividend of $0.29 per share, payable on 2023-10-25, with the ex-dividend date set for 2023-10-03. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Comcast Corp's dividend performance and assess its sustainability.
Understanding Comcast Corp's Business Model
Comcast Corp is a conglomerate consisting of three primary segments. The core cable business provides television, internet access, and phone services to nearly half of the U.S. homes and businesses. Comcast also owns NBCUniversal, which includes several cable networks, the NBC broadcast network, the Peacock streaming platform, Universal Studios, and several theme parks. Additionally, Comcast acquired Sky in 2018, the dominant television provider in the U.K. and a significant pay-television provider in Italy, Germany, and Austria.
Comcast Corp's Consistent Dividend History
Comcast Corp has maintained a consistent dividend payment record since 2008, distributed on a quarterly basis. The company has increased its dividend each year since 2008, earning it the status of a dividend achiever, a recognition given to companies that have increased their dividend each year for at least the past 15 years.
Comcast Corp's Dividend Yield and Growth
As of today, Comcast Corp currently has a 12-month trailing dividend yield of 2.54% and a 12-month forward dividend yield of 2.63%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, Comcast Corp's annual dividend growth rate was 8.70%, which increased to 10.90% per year over a five-year horizon. Over the past decade, Comcast Corp's annual dividends per share growth rate stands at an impressive 12.80%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
Comcast Corp's dividend payout ratio as of 2023-06-30 is 0.70, suggesting that the company's dividend may not be sustainable. However, Comcast Corp's profitability rank of 8 out of 10 suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Looking at Growth Metrics for Future Prospects
Comcast Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Comcast Corp's revenue has increased by approximately 5.10% per year on average, outperforming approximately 57.1% of global competitors. Furthermore, the company's 5-year EBITDA growth rate of -17.00% outperforms approximately 7.69% of global competitors.
Conclusion
With a consistent dividend history, impressive yield, and growth rates, Comcast Corp presents an intriguing prospect for dividend-focused investors. However, the sustainability of its dividends is contingent on its payout ratio and growth metrics. While the company's payout ratio suggests potential risks, its solid profitability and strong growth metrics offer reassurance. Investors should keep a close eye on these factors when considering Comcast Corp as a potential addition to their portfolios.
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