NEXSTAR MEDIA GROUP INC (NASDAQ:NXST) – A Strong Dividend Stock with Solid Fundamentals

NEXSTAR MEDIA GROUP INC (NASDAQ:NXST) stands out as a compelling choice for dividend investors, according to our Best Dividend Stocks screen. The company combines an attractive dividend yield with strong profitability and reasonable financial health, making it worth a closer look for income-focused portfolios.

Key Dividend Strengths

• High Dividend Yield: NXST offers a yearly dividend yield of 4.39%, well above the S&P 500 average of 2.41%. This makes it an appealing option for investors seeking steady income.
• Consistent Dividend Growth: The company has increased its dividend at an average annual rate of 30.53% over the past five years, demonstrating a commitment to rewarding shareholders.
• Reliable Track Record: NXST has paid dividends for at least 10 years without any reductions, indicating stability in its payout policy.
• Sustainable Payout Ratio: Only 30.33% of earnings are allocated to dividends, suggesting the current payout is well-supported by profits.

Profitability Highlights

NXST earns a Profitability Rating of 9/10, reflecting strong financial performance:

• High Margins: The company’s operating margin (23.88%) and profit margin (13.36%) rank among the best in its industry.
• Strong Returns: With a Return on Equity (ROE) of 31.99%, NXST outperforms 93.62% of its peers.

Financial Health Considerations

While NXST’s Health Rating of 5/10 suggests some caution, key points include:

• Liquidity Strength: A current ratio of 1.66 indicates sufficient short-term financial flexibility.
• Debt Levels: The company carries a higher debt-to-equity ratio (2.84), which is common in the media sector but warrants monitoring.

Valuation

NXST appears reasonably priced, with a P/E ratio of 8.59, significantly below the industry average. This suggests potential value for investors.

For a deeper dive into NXST’s fundamentals, review the full report here.

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Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.