Viacom Boosts Stock Dividend By 9%
Viacom’s Toughest Critic Upgrades Stock But Warns Of “Storm Clouds”
The quarterly outlay rises beginning July 1 to 30 cents a share from 27.5 cents for both the Class B stock (which the public owns) and Class A (79.4% owned by Chairman Sumner Redstone). This is the third increase in the three years since Viacom began paying a dividend. “Our solid balance sheet and strong cash flow provide us the flexibility for continued investment in our popular brands and properties while delivering substantial capital directly to stockholders through dividends and our ongoing $10 billion share repurchase program,” CEO Philippe Dauman says. The boost “underscores why we continue to like this stock” and makes Viacom’s dividend yield “one of the highest among the diversified entertainment companies,” says Wells Fargo’s Marci Ryvicker.