New Media Investment Group, Inc. : NEWM-US: Dividend Analysis : November 08th, 2017 (record date) : By the numbers : November 13, 2017

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 Yield
Dividend Quality Score

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.
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), 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).

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
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.

Company Profile

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.

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