Nexstar Broadcasting Group Inc

Nexstar Media Group reported record second-quarter results, with net revenue reaching $2 billion, a 62.2% increase driven by the acquisition of TEGNA and higher advertising and distribution revenue from legacy units. TEGNA contributed $697 million in revenue, reflecting the first full quarter of operations following the close of the acquisition on March 19, 2026. Distribution revenue rose 52.3% to $1.1 billion, while advertising revenue increased 81.5% to $862 million, including $331 million from TEGNA and a $75 million rise in legacy political advertising. Adjusted EBITDA was $633 million, a 31.8% margin, and adjusted free cash flow more than doubled to $238 million. The company repaid $409 million of debt, bringing total debt to $11.7 billion as of June 30, 2026, and returned $57 million to shareholders through dividends.

Nexstar Media Group announced that its Board of Directors declared a quarterly cash dividend of $1.86 per share of its common stock. The dividend is payable on Friday, August 28, 2026, to shareholders of record on Friday, August 14, 2026. The company intends to pay regular quarterly cash dividends for the foreseeable future, though all subsequent dividends will be reviewed quarterly and declared by the Board at its discretion, including future increases.

Nexstar Media Group announced it will launch daily primetime local newscasts on its stations in Dallas and Phoenix beginning in mid-August. The newscasts will air seven days a week at 9 p.m. local time on KDAF-TV in Dallas and KAZT-TV in Phoenix, following programming on The CW Network. The move brings local news content to millions of new viewers in two of the nation's top-12 markets. Andrew Alford, President of Nexstar's broadcasting division, said the company is committed to providing high-quality, fact-based local journalism, especially as the mid-term elections approach.

A 66-year-old with $1.3 million seeks sustainable dividend income from overlooked mid-caps. Nexstar Media Group yields 4.54% with free cash flow covering its dividend 5.3 times despite a high GAAP payout ratio, though post-TEGNA debt rose to $12.2 billion. Amdocs trades at a 10 times price-to-earnings ratio with a 4.4% yield after a 42.69% drawdown, and its free cash flow covers the dividend 2.87 times following a 14th consecutive annual raise. Banc of California raised its quarterly dividend 20% to $0.12 per share, supported by $255.6 million in recovered operating cash flow and a conservative 32% earnings payout ratio.