Steadily growing television company Nexstar Broadcasting Group is doing more than just grow its portfolio. It’s also reducing its leverage and at the same time, it’s initiating a new quarterly dividend to benefit its shareholders.
The dividend will be $0.12 to holders of Class A and Class B common stock. There is still time to get aboard – the distribution will go to shareholders of record as of 2/15/13, and will be paid 3/1/13.
Nextstar exec Perry Sook commented, “The initiation of a quarterly cash dividend reflects both the growing free cash flow generated by our diversified media platform as well as our commitment to deliver value to our shareholders. Importantly, the annual capital allocated to dividend payments at this time relative to the total free cash flow that Nexstar now generates, provides us with ample liquidity to reduce leverage, consider additional accretive station acquisitions and undertake other initiatives to enhance long-term shareholder value.”
Nexstar said that while it believes the dividends will be going out for the foreseeable future, the policy will be under continual review by the company’s board of directors.
RBR-TVBR observation: Be sure to catch the RBR-TVBR Executive Session with Perry Sook coming in our Wednesday 1/30 morning report.