A Big Dividend Bump Comes For Nexstar Shareholders


Nexstar Media Group shareholders who are awaiting a big benefit from holding the TV station owner’s stock through its merger with Tribune Media are poised to receive a significant bonus from the Dallas-based company.

Nexstar’s Board of Directors has approved a hefty 24.4% increase in the company’s quarterly cash dividend, to $0.56 per share of its Class A common stock.

It begins with the dividend declared for the first quarter of 2020 — payable on Friday, February 28  to shareholders of record on Friday, February 14.

Nexstar shares are again on a hot streak. After recently reaching an all-time high of $131.12, NXST as of 1:30pm Eastern on Friday (1/31) was at $123.14. A $142.30 1-year target estimate is in place for Nexstar.

“Since Nexstar first declared a quarterly cash dividend in 2013, our dividend has grown by over 24% on a compound annual basis reflecting the Board’s commitment to creating new value for shareholders and the significant and ongoing growth of the company’s free cash flow, which is expected to exceed $1.0 billion on a pro-forma average annual basis in the 2019/2020 cycle,” said Perry A. Sook, Chairman and President/CEO at Nexstar.

While Nexstar intends to pay regular quarterly cash dividends for the foreseeable future, all subsequent dividends will be reviewed quarterly and declared by the Board of Directors at its discretion.