With the addition of CBS Radio, all eyes are on Entercom Communications as the company continues to fully integrate a host of high-profile properties into its operation. With a shaky Q1, ETM shares dipped significantly on Wall Street.
Now, they’ve started a rebound — just in time for Tuesday’s commencement of ex-dividend trading.
Entercom will begin trading ex-dividend with tomorrow’s Opening Bell on Wall Street, and any investor who owned or purchased stock prior to Monday’s Closing Bell is eligible to reap the benefits.
As such, Entercom shares on Monday finished ahead 1.8%, to $7.03, for their best finish in days.
Entercom has a dividend payout ratio of 38.3%, which means that the company spends approximately $0.38 for dividend distribution out of every $1 earned, Accesswire reports.
The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts’ estimates obtained by Accesswire, Entercom is forecast to report earnings of $1.32 per share for the next year, which is more than triple compared to the company’s annualized dividend payout of $0.36 per share.
As of March 31, Entercom had outstanding $1.45 billion of senior debt under its credit facilities and $400 million in senior notes. In addition, the company had $34.8 million in cash on hand. “Entercom’s balance sheet remains strong and is well positioned over the long-term to sustain its dividend distribution,” Accesswire concludes.
On May 22, Entercom’s Board of Directors approved a quarterly dividend on its stock of $0.09 per share. The dividend is payable on June 28 to shareholders of record as of the close of business on June 13, adding to investor incentive to purchase or accumulate ETM shares.
Entercom’s indicated dividend represents a yield of 5.14% — more than double compared to the average dividend yield of 1.94% for the Services sector.