Our analysis is based on comparing New Media Investment Group, Inc. with the following peers – News Corporation Class A, Lee Enterprises, Incorporated, A.H. Belo Corporation Class A, TEGNA, Inc., Daily Journal Corporation, E. W. Scripps Company Class A, McClatchy Company Class A and New York Times Company Class A (NWSA-US, LEE-US, AHC-US, TGNA-US, DJCO-US, SSP-US, MNI-US and NYT-US).
New Media Investment Group, Inc.’s dividend yield is 8.96 percent and its dividend payout is -666.67 percent. This compares to a peer median dividend yield of 2.34 percent and a payout level of 0 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 42 out of a possible score of 100, lessens its attractiveness for dividend investors.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), NEWM-US paid a medium quality dividend, which represents a yield of 8.84% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 3 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 2.29x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to September 30, 2017), NEWM-US paid a medium 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 1.56x), investing cash flow (coverage of -0.93x), issuance cash flow (coverage of 1.85x) and twelve-month prior cash (coverage of 0.81x), for a total dividend coverage of 3.29x.
NEWM-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.19x).
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||N/A||N/A||2.02||6.5||7||8.96|
|Dividend Payout (%)||N/A||N/A||-540||84.87||191.43||-666.67|
A complete list of metrics and analysis is available on the company page.
New Media Investment Group, Inc. owns, operates and invest in a high quality, diversified portfolio of local media assets, and on growing existing advertising, and digital marketing business. The company was founded on June 18, 2013 and is headquartered in New York, NY.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.