TORONTO - Rogers (NYSE:ROG) Communications Inc. (TSX: RCI.A and RCI.B) (NYSE: RCI), a prominent Canadian telecommunications and media company, has declared a quarterly dividend of 50 cents per share on its Class A Voting and Class B Non-Voting shares. The dividend is scheduled to be paid on January 3, 2025, to shareholders who are on record as of December 9, 2024.
The company's Board of Directors has the discretion to declare quarterly dividends, and shareholders are not entitled to dividends until they are declared. In addition, the company offers a Dividend Reinvestment Plan (the Plan), allowing shareholders to reinvest cash dividends into additional Class B Shares. For the upcoming dividend, the Board has decided that the additional shares will be issued from the company's treasury with a 2% discount based on the Average Market Price, as defined in the Plan.
The Plan's details, including terms and conditions, are available on the Rogers investor relations website and from the Plan agent. Moreover, a registration statement for the Plan has been filed with the U.S. Securities and Exchange Commission and can be accessed via the SEC's website.
This announcement does not serve as an offer to sell or a solicitation of an offer to buy any securities. Such transactions are not permissible in jurisdictions where they would be considered unlawful.
Rogers Communications is recognized as Canada's leading communications and entertainment company. Its shares are publicly traded on both the Toronto Stock Exchange and the New York Stock Exchange. The information provided in this article is based on a press release statement from Rogers Communications.
In other recent news, Rogers Communications has shown solid financial performance with significant developments. The company reported a 4% increase in wireless service revenue and a 6% rise in adjusted EBITDA for the second quarter of 2024. Additionally, the company added 162,000 mobile phone net additions, primarily focusing on postpaid customers.
Rogers Communications also announced a deal to purchase a 37.5% stake in Maple Leaf Sports & Entertainment from BCE (NYSE:BCE) for $4.7 billion. BMO Capital responded by increasing the stock's price target to Cdn$70.00, maintaining an Outperform rating. The firm views this acquisition as a strategic move to enhance Rogers' presence in the sports and entertainment sector.
Despite a 2% decline in cable revenue, the company's adjusted EBITDA in this sector increased by 9%. Rogers Communications also reported a decrease in capital expenditures by 7% from the previous year, totaling $1 billion. The company's available liquidity at the end of June stood at $4.3 billion, with plans to reduce leverage to 4.2 times by year-end. These recent developments underscore Rogers Communications' commitment to growth, leverage reduction, and investment in expanding markets and services.
InvestingPro Insights
Rogers Communications' financial health and market position offer additional context to the dividend announcement. According to InvestingPro data, the company boasts a market capitalization of $21.21 billion USD, underlining its significant presence in the telecommunications sector. The company's dividend yield stands at 3.76%, which is particularly attractive given the current dividend announcement.
InvestingPro Tips highlight that Rogers has demonstrated strong revenue growth, with a 21.63% increase in the last twelve months as of Q2 2024. This robust growth trajectory supports the company's ability to maintain its dividend payments. Additionally, the company's EBITDA growth of 30.7% over the same period indicates improving operational efficiency, which could potentially lead to increased shareholder returns in the future.
It's worth noting that Rogers' P/E ratio (adjusted) is 23.35, suggesting that investors are willing to pay a premium for the company's earnings, possibly due to its strong market position and growth prospects. This valuation metric, combined with the dividend yield, presents a comprehensive picture of Rogers' appeal to investors.
For those interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into Rogers Communications' financial health and future prospects. There are 15 more InvestingPro Tips available for Rogers, which could be valuable for investors considering the company's dividend reinvestment plan or overall investment potential.
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