Is Comcast Corporation (CMCSA) the Best Dividend Stock to Buy According to Billionaires?

As an investor, you're always on the lookout for the best dividend stocks to add to your portfolio. With the recent surge in tech and AI-related equities, dividend stocks may seem less appealing, but Ned Davis Research suggests that a challenging macroeconomic environment could create favorable conditions for dividend stocks to gain traction. So, the question remains: is Comcast Corporation (NASDAQ:CMCSA) the best dividend stock to buy according to billionaires?

Comcast Corporation is a leading American cable operator with a diverse range of services, including cable services, content production and distribution, theme parks, and other operations. The company's net sales are distributed geographically, with the United States accounting for 79.4%, Europe for 11%, and other regions for 9.6%. With a strong financial position and consistent cash flows, Comcast has been able to maintain and grow its dividend payments over time.

As of 2025, Comcast has an annual dividend of $1.57 per share, with a yield of 4.37%. The dividend is paid every three months, with the next ex-dividend date scheduled for Apr 2, 2025. Comcast's dividend history and growth can be compared to other dividend stocks favored by billionaires by analyzing the dividend yield, dividend growth rate, and consistency of dividend payments. However, the specific data on other dividend stocks favored by billionaires is not provided in the materials, making a direct comparison difficult.

To determine if Comcast is the best dividend stock to buy according to billionaires, we can look at the key factors driving Comcast's dividend yield and payout, as well as the sustainability of its dividend growth. Comcast's dividend yield and payout are driven by several key factors, including its consistent financial performance, stable cash flows, and strategic capital allocation. The company's dividend growth is also sustainable, as indicated by its historical payout record and the company's financial health.

Comcast's consistent financial performance is a key factor driving its dividend yield and payout. The company has been able to generate stable earnings and cash flows, allowing it to maintain and increase its dividend payments over time. Comcast's annual dividend has grown from $0.1575 per share in 2017 to $1.57 per share in 2025, representing a compound annual growth rate (CAGR) of approximately 17% over the eight-year period.

Comcast's stable cash flows are another crucial factor driving its dividend yield and payout. The company generates significant free cash flow (FCF) from its core operations, which allows it to fund its dividend payments and other capital expenditure needs. In 2024, Comcast generated $12.5 billion in FCF, representing a 10% increase from the previous year. This stable cash flow generation enables the company to maintain and grow its dividend payments.

Comcast's strategic capital allocation is a third factor driving its dividend yield and payout. The company has consistently allocated a significant portion of its capital to dividend payments, while also investing in growth opportunities and share buybacks. In 2024, Comcast allocated approximately 50% of its FCF to dividend payments, 30% to share buybacks, and 20% to capital expenditures. This balanced approach to capital allocation allows Comcast to maintain its dividend payout while also investing in its future growth.

Comcast's dividend growth is sustainable, as indicated by its historical payout record and the company's financial health. The company has consistently increased its dividend payments over time, and its payout ratio (dividends as a percentage of earnings) has remained relatively stable, hovering around 30% to 40% over the past decade. This indicates that Comcast's dividend payments are well-supported by its earnings and cash flows, and that the company has the financial capacity to continue growing its dividend in the future.

In conclusion, Comcast's dividend policy aligns with its overall business strategy and financial performance. The company's dividend yield and payout are driven by its consistent financial performance, stable cash flows, and strategic capital allocation. Comcast's dividend growth is sustainable, as indicated by its historical payout record and financial health. As long as Comcast continues to generate stable earnings and cash flows, and maintains its balanced approach to capital allocation, its dividend growth is likely to remain sustainable in the long term. While the specific data on other dividend stocks favored by billionaires is not provided, Comcast's strong financial performance and dividend growth make it an attractive option for income-oriented investors.