Rogers Communications Inc.
) recently decided to pay an increased quarterly cash dividend of
43.5 cents per share on its common stock. It also reflects a 1.9%
increase in dividend as compared with the last payment made in
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The company will be paying the revised quarterly dividend to both
class A and class B shareholders on Sep 13, 2013, to shareholders
of record at the close of business on Oct 2, 2013.
Rogers has been paying dividends uninterruptedly for the last 10
years. The current dividend yield is 4.2% with a dividend payout
ratio of 0.46.
At the end of the second quarter of fiscal 2012, Rogers had $840
of cash and cash equivalents, while it generated $1,018.6 million
of cash from operations. The excess cash available with the
company will be utilized to repurchase shares or to pay dividends
to its shareholders.
Shaw Communications Inc.
), belonging to the same industry, paid quarterly dividends of 26
cents, 65 cents and 57 cents with dividend yields of 3.9%, 4.4%
and 5.6%, respectively. Hence, the dividend yield of Rogers is
just above Shaw Communications.
Apart from raising shareholders' value by through increased
dividends, Rogers also issued a share buyback plan of $500
million in fiscal 2013. In 2012, the bought shares worth $350
We believe that such increased dividend payment coupled with such
an aggressive stock buyback plan may impact Rogers' cash flow
going forward, thereby expanding its current
debt-to-capitalization ratio of 0.33.
Moreover, Rogers' plan to fully deploy 4G LTE across its
footprints may further impact its cash position.
Currently, Rogers Communications has a short-term Zacks Rank #3