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How Time Warner Rewards Its Shareholders

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Time Warner pays dividends consistently

Time Warner (TWX) has been steadily paying attractive dividends for the last several years. In 1Q18, the company paid $317 million, or $0.40 per share, in dividends. The company has paid a consistent dividend of $0.40 per share in each quarter for the last two years, and it 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. Since the October 2016 announcement of its potential merger with telecom giant AT&T (T), Time Warner has stopped raising its dividend and has discontinued its share repurchase program.

On April 27, Time Warner’s dividend yield was 1.70%, while rival Disney’s (DIS) dividend yield was 1.69%. Meanwhile, Comcast’s (CMCSA) dividend yield was 2.4%, and CBS’s (CBS) was 1.4%.

Balance sheet position 

In 1Q18, Time Warner’s cash flow from operations was $1.3 billion, down from the $1.5 billion seen in 1Q17. Its long-term debt rose from $18.29 billion in 1Q17 to $18.33 billion in 1Q18, and its total capital expenditure was $147 million, higher than its 1Q17 capital expenditure of $98 million.

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