Nexstar Ups Dividend, Sets $1B Share Repurchase

It OKs a 25% increase in quarterly cash dividend to $0.70 per share and authorizes repurchase up to $1 billion of its Class A common stock.

Nexstar Media Group’s board of directors approved a 25% increase in the quarterly cash dividend to $0.70 per share of its Class A common stock beginning with the dividend declared for the first quarter of 2021. The dividend is payable on Friday, Feb. 26, to shareholders of record on Friday, Feb. 12.

The board of directors also approved a new share repurchase program authorizing the company to repurchase up to $1 billion of its Class A common stock. The company said the board’s repurchase authorization “reflects the attractiveness of Nexstar’s free cash flow yield and their view of a potential acceleration of share repurchases over the next several years as Nexstar’s leverage moderates and large-scale acquisitions become more challenging from a regulatory perspective.”

The new $1 billion share repurchase program will augment the company’s existing share repurchase authorization, of which $259.2 million remained as of Sept. 30, 2020.

Perry Sook, Nexstar Media Group’s founder, chairman and chief executive officer, said: “Throughout Nexstar’s history, our disciplined approach to growth has resulted in strong and consistent free cash flow generation, affording us the financial flexibility to reduce leverage, return capital to shareholders and make select accretive acquisitions, all while continuing to invest in our business and teams.

“Consistent with our capital allocation priorities and long-standing commitment to enhancing shareholder value, we are increasing Nexstar’s dividend for the eighth consecutive year and establishing a significant share repurchase authorization, which will allow us to continue delivering industry leading risk-adjusted returns to our shareholders.”

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