Meredith Corp. : MDPEB-US: Dividend Analysis : November 30th, 2017 (record date) : By the numbers : November 30, 2017

Our analysis is based on comparing Meredith Corp. with the following peers – TEGNA, Inc., John Wiley & Sons, Inc. Class A, Time, Inc., E. W. Scripps Company Class A, Scholastic Corporation, XO Group Inc., Pearson PLC Sponsored ADR, News Corporation Class A, Wal-Mart Stores, Inc. and S&P Global, Inc. (TGNA-US, JW.A-US, TIME-US, SSP-US, SCHL-US, XOXO-US, PSO-US, NWSA-US, WMT-US and SPGI-US).

Meredith Corp.’s dividend yield is 2.23 percent and its dividend payout is 49.76 percent. This compares to a peer median dividend yield of 1.87 percent and a payout level of 36.55 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), MDPEB-US paid a high quality dividend, which represents a yield of 2.20% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality, 1 was medium quality and 1 was low quality.
  • The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), MDPEB-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.53x), investing cash flow (coverage of -1.45x), issuance cash flow (coverage of -0.13x) and twelve-month prior cash (coverage of 0.35x), for a total dividend coverage of 1.30x.

MDPEB-US’s issuance cash flow includes outflows from net share buybacks (coverage of -0.17x). Thus, the total coverage including share buybacks is 1.47x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2013-06-30 2014-06-30 2015-06-30 2016-06-30 2017-06-30 Latest
Dividend Yield (%) 3.32 3.5 3.38 3.49 3.83 2.23
Dividend Payout (%) 57.66 67.2 58.94 254 48.8 49.76

A complete list of metrics and analysis is available on the company page.

Company Profile

Meredith Corp. engages in the media and marketing activities. It operates through the Local Media and National Media segments. The Local Media segment includes television stations. It also has websites, mobile-optimized websites, and mobile applications. The National Media segment consists of national consumer media brands delivered via multiple media platforms including print magazines and digital and mobile media, brand licensing activities, database-related activities, and business-to-business marketing products and services. The company was founded by Edwin Thomas Meredith in 1902 and is headquartered in Des Moines, IA.


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