Dividend Stock #8 Sinclair Broadcasting (SBGI)
Sinclair Broadcast Group (NASDAQ: SBGI) is a television station owner that serves 35 markets across the United States.
- Current Yield: 4.8% (48 cents a share annually)
- Dividend History: After cutting its dividend of 20 cents a share in 2009, Sinclair reinstated its dividend in February at 12 cents. That’s down from pre-recession levels, but much better than the zero cents it was paying a year ago.
- Dividend Outlook: According to Bloomberg, Sinclair Broadcasting has a three-year expected dividend growth rate of 8.3%.
- Recent Performance: Thanks in large part to a pop after its dividend announcement, SGBI shares are up over 22% so far in 2011. But Sinclair was going strong before that, too, tallying gains of 40% in across the past 12 months.
- Strong Outlook for Shares: Fiscal 2010 revenue topped pre-recession levels, and after a few shortfalls in the depths of the recession Sinclair has seen five straight quarterly profits. Advertisers are starting to return to the airwaves once more, and that means Sinclair could have momentum on its side now that it is back in favor with dividend investors.