Dividend Stock Resilience in a Shifting Media Landscape

The media and communications sector is undergoing a seismic transformation. Traditional revenue streams are eroding as digital consumption patterns evolve, yet this disruption also creates opportunities for companies that can adapt. For investors, the challenge lies in identifying undervalued dividend champions—those rare entities that combine a proven track record of shareholder returns with the agility to thrive in a digital-first world. Two such candidates, John Wiley & Sons (WLY) and Telephone & Data Systems (TDS), exemplify this duality. Their resilience stems not only from financial discipline but from strategic alignment with the AI-driven and fiber-centric future of media.

The Dividend Champion Paradox in Media

Dividend champions in the media and communications sector are scarce, a reflection of the sector's inherent volatility. Unlike consumer staples or utilities, media companies face relentless pressure to reinvest in innovation rather than distribute cash. Yet, the absence of dividend champions does not mean the sector lacks value. Instead, it highlights the need to look beyond conventional metrics and focus on companies that balance growth with shareholder stewardship.

John Wiley & Sons, for instance, has increased dividends for 24 consecutive years, putting it on the cusp of Dividend Champion status. Its core business—academic publishing and research—has been a stable cash flow generator, but its recent pivot into AI licensing has unlocked new revenue streams. In Q1 2025, Wiley's AI-related revenue hit $30 million, driven by partnerships with tech firms seeking to train large language models (LLMs) on its authoritative content. This strategic pivot ensures Wiley remains relevant in an era where data is the new oil.

Digital Resilience: The Case for Wiley

Wiley's financials underscore its resilience. With a 10.5% surge in pre-market trading following Q1 2025 earnings that beat estimates by 29%, the stock has shown strong momentum. Its adjusted operating margin improved to 14.2%, and free cash flow is projected to reach $200 million by 2026. These metrics suggest a company that is not only surviving but thriving in a digital landscape.

The key to Wiley's success lies in its ability to monetize its intellectual property. By licensing content to AI developers, Wiley taps into the exploding demand for high-quality training data. This is not a one-off trend but a structural shift: corporate R&D budgets are increasingly allocated to AI, and Wiley's position as a content provider gives it a unique edge. Moreover, its global footprint—45% of its article output comes from the Asia-Pacific region—positions it to benefit from the rise of emerging markets, where demand for academic and scientific research is surging.

TDS: Fiber as the New Frontier

While Wiley thrives in the digital content space, Telephone & Data Systems (TDS) is building its future on physical infrastructure. TDS, a 52-year dividend payer, has long been a staple of the communications sector. However, its recent strategic shift toward fiber expansion and debt reduction has redefined its value proposition.

In Q2 2025, TDS announced plans to deploy fiber to 150,000 new service addresses by year-end, a move that aligns with the growing demand for high-speed connectivity. The company's sale of its wireless assets to T-Mobile for $80 million in annual interest savings further strengthens its balance sheet. With a leverage ratio expected to stay below 1.5x and a beta of 0.55, TDS offers the stability of a utility with the growth potential of a tech play.

TDS's dividend yield, though not explicitly stated in recent reports, remains attractive given its 92% total return over the past year. The company's focus on fiber—now a $1.2 trillion global market—positions it to capitalize on the infrastructure boom driven by 5G, remote work, and AI-driven data centers. Unlike many media companies that struggle with declining ad revenues, TDS's recurring revenue model from connectivity services provides a durable cash flow base.

The Undervaluation Thesis

Both Wiley and TDS exhibit signs of undervaluation. Wiley's stock trades at a price-to-earnings ratio of 12x, below its five-year average of 15x, despite its strong EBITDA growth. TDS, meanwhile, has a price-to-book ratio of 0.8x, suggesting its tangible assets are underappreciated by the market. These valuations reflect the market's skepticism about the media sector's ability to adapt—but they also present an opportunity for investors who recognize the companies' strategic foresight.

The risks, of course, are real. Wiley's Learning segment saw a 6% decline in Q3 2025, and TDS's recent EPS miss highlights the challenges of executing large-scale infrastructure projects. However, both companies have demonstrated the financial discipline to navigate such headwinds. Wiley's 31-year dividend streak and TDS's 52-year record are not mere coincidences; they reflect a culture of prudence and long-term thinking.

Strategic Alignment with Digital Trends

The true test of a dividend champion is its ability to evolve with the times. Wiley's AI licensing and TDS's fiber expansion are not just tactical moves—they are existential pivots. In a world where digital consumption is the norm, companies that fail to adapt will be left behind. Wiley's integration into the AI ecosystem ensures its content remains a critical input for the next generation of technology. TDS's fiber network is the backbone of this digital future, enabling the data flows that power everything from streaming services to autonomous vehicles.

Investment Implications

For investors seeking resilience in a volatile sector, Wiley and TDS offer a compelling duality. Wiley's high dividend yield (3.5%) and growth in AI-related revenue make it a hybrid of income and innovation. TDS's low volatility and infrastructure-driven growth provide a stable anchor in a portfolio. Together, they represent a balanced approach to navigating the media landscape's transformation.

The key is to view these stocks through a long-term lens. Dividend champions are not short-term plays; they require patience and conviction. Wiley's path to Dividend Champion status in 2024 and TDS's fiber expansion are multi-year projects. Those who invest now may reap the rewards of compounding dividends and capital appreciation as these companies solidify their positions in the digital era.

In a world where the only constant is change, the ability to adapt is the ultimate competitive advantage. Wiley and TDS have shown they are not just surviving the shift in media—they are leading it. For investors, this is the hallmark of a true dividend champion.