Comcast's 4.45% Yield Looks Tempting: Should You Take the Bait?

"Comcast recently sent $0.33 per share to investors in January 2026, marking the company's eighteenth consecutive year of dividend growth. The cable and media giant's dividend program stands out in a sector where many competitors have slashed or eliminated payouts entirely. With a current yield of 4.09% and a remarkably conservative payout ratio of just 24.49%, Comcast's dividend looks sustainable even as the company navigates intense broadband competition and invests heavily in growth initiatives. But the real story lies in the cash flow generation backing these payments."

"Comcast generated $21.9 billion in free cash flow during 2025, the highest annual figure in company history. That translates to 4.48x coverage for the $4.9 billion paid out in dividends-well above the 2.0x threshold typically considered safe. The improvement from 2024 is striking. Free cash flow jumped 41.3% year-over-year, driven by stronger operating cash flow and reduced capital expenditures. Even after funding $7.2 billion in share repurchases, the company returned only 55% of its free cash flow to shareholders, leaving substantial cushion for economic downturns or strategic investments."

""Our capital allocation strategy remains unchanged. Our priorities are to invest organically in our growth businesses, maintain a strong balance sheet, and return capital to shareholders.""

Comcast paid $0.33 per share in January 2026, continuing eighteen consecutive years of dividend growth. The dividend yields 4.09% with a payout ratio of 24.49%. Comcast generated a record $21.9 billion in free cash flow in 2025, providing 4.48x coverage for $4.9 billion in dividends. Free cash flow rose 41.3% year-over-year due to stronger operating cash flow and lower capital expenditures. The company repurchased $7.2 billion in shares and returned 55% of free cash flow to shareholders. Quarterly dividend rose from $0.31 to $0.33 in Q2 2025, a 6.5% increase. Dividend growth since 2017 totals 109%, roughly 8.5% compounded annually.

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