Nexstar Media Group‘s Board of Directors have given the green light to a little more cash to shareholders eligible for a dividend applicable to shareholders of record on Feb. 10.
The broadcast television company’s board on Friday approved a 25% increase in its quarterly cash dividend, to 30 cents per share.
This applies to Nexstar’s Class A common stock, beginning with the dividend declared for Q1 2017.
The dividend is payable on Friday, Feb. 24.
“Nexstar’s fourth consecutive annual increase in our cash dividend highlights the board’s commitment to create value for shareholders through our proven ability to generate prodigious free cash flow growth through accretive acquisitions, meticulous integration and disciplined operating practices which collectively allow for expanded returns of capital,” said Perry Sook, Nexstar’s founder, Chairman and President/CEO.
He added that he and the company’s board “are highly confident in the strong growth prospects for the new Nexstar Media Group” as it follows the successful strategies established in terms of “building the top line, maintaining close control of fixed and variable costs and optimizing the balance sheet and capital structure.”
Sook expects this plan will continue to support Nexstar’s goals of delivering or exceeding its free cash flow targets of approximately $565 million for the 2016/2017 cycle, while allowing the company to reduce leverage, pursue additional select accretive acquisitions, pay dividends and consider other return of capital initiatives, and take any other actions for the continued near- and long-term enhancement of shareholder value.
“Next month Nexstar will report record operating results for 2016, marking the fifth consecutive year of record results, and we remain confident that 2017 and beyond will extend our long-term success in generating record free cash flow,” Sook said.