Fox's Upcoming Dividend: A Closer Look at the Numbers

Fox Corporation (NASDAQ:FOXA) is set to pay a dividend of $0.27 per share on March 26, 2025. As investors, we should take a closer look at the numbers behind this payout to understand its significance and sustainability. Let's dive into the details and explore what this dividend means for Fox and its shareholders.




Fox's Dividend Payout History

Fox has a history of consistent dividend growth, with a compound annual growth rate (CAGR) of approximately 2.7% over the past five years. The upcoming dividend payment of $0.27 per share is in line with this trend, representing a 3.85% increase from the previous year's payout of $0.26 per share. This steady growth in dividends indicates that Fox is committed to returning value to shareholders and has the financial strength to support it.

Fox's Dividend Yield vs Industry Peers

Fox's current dividend yield is 1.0%, which is slightly lower than the average dividend yield of its industry peers. For instance, Comcast (CMCSA) has a dividend yield of 3.54%, while the New York Times (NYT) has a yield of 1.06%. However, Fox's dividend yield is higher than that of Walt Disney (DIS) at 0.87%. Despite its lower dividend yield, Fox's dividend growth, earnings growth, low payout ratio, strong cash flow, and positive analyst sentiment make it an attractive income-generating investment.

Earnings and Dividend Sustainability

Fox's earnings per share (EPS) is forecast to fall by 8.5% over the next year, which could potentially impact the sustainability of the dividend payment. However, Fox has a history of dividend growth and a low payout ratio, indicating that the company has the financial resources to maintain its dividend payment. Additionally, Fox's strong cash flow ensures that the company has the financial resources to support its dividend payments and invest in growth opportunities.

Investment Considerations

As investors, we should consider the following factors when evaluating Fox's dividend payment and its sustainability:

1. Monitor the company's earnings and cash flow: Keep a close eye on Fox's earnings and cash flow to ensure that the company has enough resources to maintain its dividend payment. If earnings continue to decline, the company may need to adjust its dividend payout to maintain a sustainable level.
2. Diversify your portfolio: Diversifying your portfolio by investing in other companies with stable earnings and dividend payments can help reduce the impact of a decline in Fox's dividend payment. This can help ensure that your overall investment income remains stable.
3. Consider the company's dividend payout ratio: The dividend payout ratio is the percentage of earnings that a company pays out as dividends. A lower payout ratio indicates that the company is retaining more of its earnings to reinvest in the business. If Fox's payout ratio increases significantly, it may be a sign that the company is relying too heavily on its dividend payment to maintain shareholder value.
4. Evaluate the company's long-term prospects: Consider the company's long-term prospects and its ability to generate earnings growth. If Fox can maintain or increase its earnings over the long term, it may be able to sustain its dividend payment even if earnings decline in the short term.

In conclusion, Fox's upcoming dividend payment of $0.27 per share is in line with the company's history of consistent dividend growth and indicates a commitment to returning value to shareholders. While the company's earnings forecast may impact the sustainability of the dividend payment, Fox's strong financial position and positive analyst sentiment make it an attractive income-generating investment. As investors, we should monitor the company's earnings and cash flow, diversify our portfolios, consider the company's dividend payout ratio, and evaluate its long-term prospects to ensure that our investments remain sustainable over the long term.