Nexstar Media Group said its board of directors approved an increase in its quarterly cash dividend and authorized the company to repurchase $1 billion of its shares.
The 25% dividend increase will raise the company’s payout to 70 cents a share, starting with the first quarter of 2021.
“Throughout Nexstar’s history, our disciplined approach to growth has resulted in strong and consistent free cash flow generation, affording us the financial flexibility to reduce leverage, return capital to shareholders and make select accretive acquisitions, all while continuing to invest in our business and teams,” Perry Sook, Nexstar’s founder, chairman and CEO.
“Consistent with our capital allocation priorities and long-standing commitment to enhancing shareholder value, we are increasing Nexstar's dividend for the eighth consecutive year and establishing a significant share repurchase authorization, which will allow us to continue delivering industry leading risk-adjusted returns to our shareholders,” Sook said.
The share repurchase authorization will be executed at the Board’s discretion as market conditions warrant throughout the authorization period and are subject to regulatory considerations.
The new $1 billion authorization comes on top of an existing $259.2 million remaining as of Sept. 30, 2020 from previous authorizations.
