Tegna Raises Quarterly Dividend By 36%
Tegna Inc. announced Monday that its board of directors has approved a dividend increase of ten cents per share on an annual basis, approximately 36% above the prior dividend. The board also declared that the first increased quarterly dividend of 9.5 cents per share will be payable on July 1 to stockholders of record as of the close of business on June 4.
“Our announcement today reflects our board’s commitment to actively reviewing all options to create value for our shareholders, the continued execution of our long-term strategy, and the confidence in our continued strong performance and growth, which combined, led to our decision to increase our annual dividend,” said Howard D. Elias, chairman of the board. Elias added: “Tegna is well positioned to generate solid cash flow, supported by a number of factors, including continued strong performance and a favorable business mix including high-margin and durable subscription and political revenues. We will continue to create value for shareholders through a capital allocation program that balances returns through investments in organic and inorganic growth opportunities, paying down debt and returning additional capital by issuing dividends and repurchasing shares.”
“We are very pleased with the resiliency of the Tegna team and our company performance during 2020, in the midst of the COVID-19 pandemic,” said Dave Lougee, president and CEO. Lougee added: “The strength of our business, improved durability of our cash flows, and continued commitment to prudent expense management drove the decision to increase our quarterly dividend, which will result in a significant increase from our previous dividend payment.”
Lougee continued: “We are also reiterating the first quarter and full year 2021 guidance we provided on March 1, 2021. First quarter revenue is expected to be at the high-end of our guidance range reflecting our confidence in the continued performance of the business. This includes year-over-year advertising and marketing services growth of high-single digits for the first quarter. As a reminder, our full year guidance includes subscription revenue growth of mid to high-teens percent for the year, driven by the repricing of 35% of our subscribers which occurred at the end of 2020; in ad