Meredith for Growth and Income - Analyst Blog
February 05 2013 - 5:50AM
Zacks
Meredith
Corporation (MDP) recently increased its quarterly
dividend by 6.5%, bringing the annualized payout to $1.63 per share
with a healthy dividend yield of 4.5% based on yesterday’s closing
price.
The move is a part of the company’s
TSR (Total Shareholder Return) strategy, wherein this leading media
and marketing company intends to boost shareholders value through
dividends, share repurchases and strategic investments in business
to drive growth.
Meredith has a strong history of
making dividend payouts for 66 consecutive years. Over the last
decade, the company has boosted its dividend at an average
annualized rate of 16% and raised dividend annually for 20 straight
years.
A dividend hike primarily reflects
Meredith’s sound financial position and healthy cash flow
generating capabilities. Given the company’s shareholder friendly
moves, it indeed remains an attractive opportunity for investors
seeking both growth and income.
The quarterly dividend, after the
hike, will come to 40.75 cents a share, up from the prior payment
of 38.25 cents. The enhanced quarterly dividend will be payable on
Mar 15, 2013, to shareholders of record as on Feb 28, 2013.
Other companies, which recently
increased dividend, include Limited Brands, Inc.
(LTD) by 20% to 30 cents, The McGraw-Hill Companies,
Inc. (MHP) by 9.8% to 28 cents and Family Dollar
Stores Inc. (FDO) by 23.8% to 26
cents.
Currently, shares of Meredith
retain a Zacks Rank #2 (Buy) as it continues to focus on bolstering
advertising revenue, primarily in the digital space and enhancing
online consumer transactions, especially magazine subscription
orders. Moreover, the company’s focus on brand licensing, marketing
services and e-Commerce is expected to drive revenues.
FAMILY DOLLAR (FDO): Free Stock Analysis Report
LIMITED BRANDS (LTD): Free Stock Analysis Report
MEREDITH CORP (MDP): Free Stock Analysis Report
MCGRAW-HILL COS (MHP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
LandBridge (NYSE:LB)
Historical Stock Chart
From Jun 2024 to Jul 2024
LandBridge (NYSE:LB)
Historical Stock Chart
From Jul 2023 to Jul 2024