Gannett's Dividend Hike Puts It In A Class Of Its Own

| About: Gannett Co., (GCI)

Media giant Gannett Co Inc (NYSE:GCI) recently announced a 150% increase in its dividend. GCI will now pay an annual dividend of 80 cents per share. This means GCI will now yield over 5%. This yield makes GCI the highest-yielding media stock by far. For investors looking to own a media company and generate income, GCI is the premier option.

GCI Profile

  • Publisher of 82 daily newspapers including the USA TODAY.
  • Operator of 23 television stations.
  • Published of about 600 magazines.
  • $1.89 trailing earnings per share
  • 7.75 times forward earnings
  • $1 billion net debt

Competitor Dividends

  • New York Times Co (NYSE:NYT): 0%
  • Washington Post Co (WPO): 2.52%
  • News Corp (NASDAQ:NWS): 0.84%
  • Viacom (NYSE:VIA): 1.86%
  • Walt Disney Co (NYSE:DIS): 1.45%
  • Time Warner Inc (NYSE:TWX): 2.79%

With GCI's increased dividend, it will yield much more than other media companies. This puts GCI in the unique place of being the go-to name in the sector when it comes to generating income. In addition to the increased dividend, GCI also announced a $300 million share buyback plan.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.