What Does Comcast’s Dividend Reveal About the Company?

Comcast

On Wednesday, Comcast Corp. (NASDAQ:CMCSA) announced that its Board of Directors declared a quarterly dividend of $0.195 a share on the company’s common stock.

Comcast’s newest quarterly dividend is in line with the company’s previous dividends and has a forward yield of 1.74 percent. The quarterly dividend will be payable on October 23, 2013, to shareholders of record on October 2, 2013, with an ex-dividend date of September 30.

The newest payout is the same amount that Comcast has paid since April when it raised the quarterly payout 20 percent. Annually, the payout per share amounts to $0.78.

The news comes as analysts appear to be committed in their strong ratings for the company. A “buy” rating has been reiterated by research analysts at TheStreet. “Comcast (NASDAQ:CMCSA) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+,” the analysts wrote.

“The company’s strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow,” they said.

Other firms were similar in their optimism for the company. Analysts at Wunderlich raised the price target on shares from $48 to $56 in a recent note to investors earlier this month, also rating the stock as a “buy.” Analysts at Raymond James upgraded the status of Comcast Corp. shares from an “outperform” rating to a “strong-buy” rating in June.

On Wall St. Cheat Sheet, Victor Mora has rated Comcast as an “outperform” stock, explaining that, “The stock has been part of an explosive move toward higher prices, but it is now consolidating and may need a little more time before it gets going. Over the past four quarters, earnings and revenue figures have been on the rise, which has really pleased investors in the company.”

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