Rogers Communications, Inc. : RCI-US: Dividend Analysis : December 11th, 2017 (record date) : By the numbers : December 11, 2017

Our analysis is based on comparing Rogers Communications, Inc. with the following peers – Shaw Communications Inc. Class B, BCE Inc., TELUS Corporation, Netflix, Inc. and Cogeco Communications Inc. (SJR-US, BCE-US, TU-US, NFLX-US and CCA-CA).

Rogers Communications, Inc.’s dividend yield is 3.65 percent and its dividend payout is 76.66 percent. This compares to a peer average dividend yield of 3.82 percent and a payout level of 82.26 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 42 out of a possible score of 100 is only about average.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), RCI-US paid a high quality dividend, which represents a yield of 2.90% 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 2 were medium quality and 3 were 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), RCI-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 3.89x), investing cash flow (coverage of -2.44x), issuance cash flow (coverage of -0.47x) and twelve-month prior cash (coverage of 0.11x), for a total dividend coverage of 1.44x.

RCI-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.31x).

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 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 3.44 3.65 4.19 4.32 3.75 3.65
Dividend Payout (%) 48.47 54.04 70.55 71.91 118.52 76.66

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

Company Profile

Rogers Communications, Inc. engages in the provision of wireless communications services. It operates its business through the following segments: Wireless, Cable, Business Solutions, and Media. The Wireless segment refers to wireless communications operations carried on by Rogers Communication Partnership, which provides retail and business voice and data wireless communications services. The Cable segment provides telecommunications operations, including Internet, television, and telephony services to consumers and businesses. The Business Solutions segment offers network connectivity through fibre network and data center assets to support a range of voice, data, networking, hosting, and cloud-based services for the enterprise, public sector, and carrier. The Media segment comprises of diversified portfolio of media properties, such as sports media and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, digital media, and publishing. The company was founded by Edward Samuel Rogers, Jr. in 1960 and is headquartered in Toronto, Canada.

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