) is the leading media and marketing company in the U.S. with
interests in publishing, broadcasting, integrated marketing and
interactive media. Recently, the company announced a new share
buyback authorization and a regular quarterly dividend, reflecting
its strong cash flow generation capability.
Des Moines, IA-based Meredith Corporation's board of directors
approved a $100 million share repurchase program. Further, the
company announced a regular quarterly dividend of 43.25 cents per
share. The dividend, which is due on Jun 13, 2014, will be paid to
shareholders of record as of May 30, 2014.
In Feb 2014, Meredith Corporation had announced a 6.1% hike in its
regular quarterly dividend to 43.25 cents or $1.73 annually.
Meredith Corp., through its total shareholder return (TSR)
strategy, intends to increase shareholders' value through dividend
payouts, share repurchases and strategic investments in business to
drive growth. Since the implementation of this strategy two years
back, the company has hiked its dividend by over 70%.
Meredith, which competes with
Martha Stewart Living Omnimedia Inc.
Reed Elsevier plc
), has a history of paying dividends regularly for 67 years. Over
the last decade, it has increased its dividend consistently, at an
average annualized rate of 14%. Moreover, the company has $16
million worth of share left under its earlier share repurchase
authorization as of Mar 31, 2014. The company now has $116 million
worth of shares left to be repurchased including the new share
Moreover, under the TSR strategy, this Zacks Rank #2 (Buy) stock
constantly seeks to venture into new arenas and add alternative
revenue generating channels through strategic acquisitions and
collaborations. Meredith's contract with
Wal-Mart Stores Inc.
) includes an expansion of the Better Homes and Gardens branded
home decor and garden program at Wal-Mart stores across the United
States and Canada.
These factors make Meredith Corp. an ideal pick for yield-seeking
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