How Time Warner Is Bolstering Its Shareholder Returns



Time Warner consistently paying dividends

Time Warner (TWX) has been steadily paying attractive dividends for many years. In fiscal 4Q17, the company paid $316 million, or $0.4025 per share in dividends on February 1, 2018, to shareholders of record as of January 10.

Notably, the company has paid a consistent dividend of $0.4025 per share in each quarter for the past two years. In fact, the company expects to maintain a stable and regular dividend payment trend in the near term.

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Dividend payment history

Time Warner has been paying regular dividends since 2009. In fact, from 2009 to 2016, the media conglomerate has raised its dividend every year.

However, since the announcement of the merger agreement with telecom biggie AT&T (T), Time Warner has stopped raising its dividend but has maintained the same dividend amount. The merger has kept Time Warner’s dividend at $0.4025.

Notably, the company also used to repurchase shares to return value to its shareholders. However, the company discontinued its share repurchase program in connection with its merger agreement with AT&T announced in October 2016.

Dividend yield

At the end of February 26, 2018, Time Warner’s dividend yield stood at 1.69%, while rival Walt Disney’s (DIS) dividend yield was at 1.53%. Meanwhile, Comcast’s (CMCSA) dividend yield came in at 1.92%, compared with CBS’s (CBS) 1.29%.

By the end of December 2017, Time Warner had paid dividends of around $1.3 billion, while Comcast paid dividends of approximately $2.9 billion in 2017. CBS distributed dividends totaling $296 million by the end of December.


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