Bulletin: TEGNA Inc.'s Planned Dividend Increase Is Not Significant Enough To Raise Its Leverage - S&P Global Ratings’ Credit Research

Bulletin: TEGNA Inc.'s Planned Dividend Increase Is Not Significant Enough To Raise Its Leverage

Bulletin: TEGNA Inc.'s Planned Dividend Increase Is Not Significant Enough To Raise Its Leverage - S&P Global Ratings’ Credit Research
Bulletin: TEGNA Inc.'s Planned Dividend Increase Is Not Significant Enough To Raise Its Leverage
Published Mar 30, 2021
2 pages (1092 words) — Published Mar 30, 2021
Price Free  |  Buy this Report Now

About This Report

  
Abstract:

NEW YORK (S&P Global Ratings) March 30, 2021--TEGNA Inc. (BB-/Positive/--) announced yesterday that it will increase its annual dividend rate to $0.38 per share in the second quarter of 2021 (an annual increase of $0.10 per share). Therefore, we now expect the company to spend about $83 million each year on dividends, which compares with our previous forecast of $60 million. However, the incremental cash outflow will not affect TEGNA's leverage, which we continue to estimate will decline to the mid-3x area in 2021 from 4.1x in 2020. The company has not changed its dividend since 2017, when it spun off Cars.com. TEGNA's dividend increase is consistent with our expectation that it will use its cash flow for shareholder-friendly activities.

  
Brief Excerpt:

STANDARD & POOR'S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC. S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or...

  
Report Type:

Bulletin

Ticker
GCI
Issuer
TEGNA Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: TEGNA Inc.'s Planned Dividend Increase Is Not Significant Enough To Raise Its Leverage" Mar 30, 2021. Alacra Store. May 03, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-TEGNA-Inc-s-Planned-Dividend-Increase-Is-Not-Significant-Enough-To-Raise-Its-Leverage-2619710>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: TEGNA Inc.'s Planned Dividend Increase Is Not Significant Enough To Raise Its Leverage Mar 30, 2021. New York, NY: Alacra Store. Retrieved May 03, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-TEGNA-Inc-s-Planned-Dividend-Increase-Is-Not-Significant-Enough-To-Raise-Its-Leverage-2619710>
  
Free
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.