Key Takeaways
🌿 Attractive dividend yield of 3.83% backed by consistent growth and a low payout ratio of 22%.
💵 Strong cash flow generation, with $27.7 billion in operating cash and $12.5 billion in free cash flow supporting dividends and buybacks.
📊 Mixed analyst ratings; consensus target at $44.60 suggests 34% upside potential despite near-term growth concerns.
📈 Recent quarterly earnings beat expectations, though broadband subscriber losses highlight ongoing competitive pressures.
👔 Experienced management led by CEO Brian Roberts, emphasizing disciplined financial management and strategic adaptation.
Last Update 4/24/25
Comcast Corporation (CMCSA) offers a compelling mix of consistent dividend income, strong free cash flow, and a strategic pivot toward growth areas like streaming and theme parks. With a 3.83% forward dividend yield and a low payout ratio of just over 22%, the company provides steady shareholder returns backed by healthy cash generation. Recent financials show nearly $27.7 billion in operating cash flow and more than $12.5 billion in free cash flow over the trailing twelve months. While broadband subscriber losses and video declines remain challenges, Comcast is actively responding with pricing innovations and digital investment.
Leadership, anchored by CEO Brian Roberts, continues to focus on evolving the business while maintaining financial discipline. The stock trades at a modest forward P/E of 8.05, with analysts assigning a consensus price target of $44.60, suggesting room for upside if execution remains on track.
Recent Events
Lately, Comcast’s stock performance hasn’t exactly turned heads. Shares have slid to around $33, reflecting a near 9% dip over the past year. That’s in sharp contrast to the broader S&P 500, which has managed a solid gain. The market seems cautious about legacy cable providers, especially with ongoing cord-cutting and the never-ending evolution of streaming.
Even so, Comcast continues to adapt. The broadband segment remains a backbone, and its media arm is pushing further into the digital world. Peacock may not be Netflix, but it’s carving out its own lane. And behind the scenes, Comcast’s numbers are telling a much stronger story than the share price might suggest. Operating cash flow for the year came in at nearly $27.7 billion, with about $7.7 billion in levered free cash flow. That’s more than enough to fund its dividend and still have plenty left over.
📌 Key Dividend Metrics
📈 Forward Yield: 3.83%
💰 Annual Dividend (Forward): $1.32 per share
📅 Latest Dividend Date: April 23, 2025
📉 Payout Ratio: 22.46%
📈 5-Year Average Yield: 2.48%
📊 Dividend Growth Rate (5-Year): Consistently rising
🛡️ Dividend Safety: Supported by strong cash flow
🪙 Ex-Dividend Date: April 2, 2025
Dividend Overview
With a current yield of 3.83%, Comcast offers more income than the average stock in the S&P 500. That makes it an appealing choice for those who prioritize steady payouts. What makes it even more attractive is the low payout ratio—just over 22%. That means the company is only using a fraction of its earnings to fund the dividend, leaving a wide margin of safety.
Comcast’s approach here is disciplined. It could afford to raise the dividend more aggressively, but management appears committed to maintaining a balanced capital strategy. This gives them the flexibility to reinvest, reduce debt, or return additional capital through buybacks.
Looking at valuation, Comcast trades at a forward P/E of 8.05, which suggests that many investors remain cautious. But when you factor in the reliable cash flow, solid profit margins, and consistent dividend history, there’s a sense that the market may be underestimating this company’s long-term value.
Dividend Growth and Safety
Now here’s where things get interesting. Comcast has not only paid its dividend consistently, but it has also increased it year after year. There’s no drama here—just steady growth, even when the industry is going through shifts and challenges.
That upward trend is backed by serious free cash flow. The company could pay its dividend twice over and still have money left on the table. This kind of breathing room is exactly what dividend investors should be looking for—it speaks to the sustainability of the income stream.
Debt is a part of Comcast’s story, no question. Total debt is around $105 billion, which isn’t small. But the business throws off enough EBITDA—about $38 billion—to handle it. The company’s leverage ratios are manageable, and its cash flows are more than sufficient to meet its obligations without threatening the dividend.
Comcast also has a current ratio under 1, which might normally raise eyebrows. But in a company of this size and scale, with regular, recurring revenue, it’s less of a red flag and more of a non-issue. It’s not a liquidity concern—just how they run their capital structure.
And it’s worth noting: institutional investors are clearly comfortable here. Almost 89% of the float is held by institutions, which shows strong confidence from the big-money players.
For dividend-focused investors, this is the kind of setup that works. Comcast may not offer flashy growth, but it offers something even more valuable to many portfolios—consistency. A business that knows what it’s doing, pays you to hold it, and has the financial backbone to keep doing so for years to come.
Cash Flow Statement
Comcast’s trailing 12-month cash flow paints the picture of a business with resilient operational efficiency. It pulled in $27.67 billion in operating cash flow, remaining consistent with the prior year. This steady stream of cash from core operations reflects a reliable foundation, even as the business invests heavily in infrastructure and content. Free cash flow came in at $12.54 billion, showing that despite aggressive capital expenditures north of $15 billion, Comcast still generated a healthy surplus of cash that supports dividends and share buybacks.
On the financing front, the company saw a significant outflow of $10.88 billion. A large chunk of that came from repurchasing $9.1 billion in stock and repaying $3.57 billion in debt, only partially offset by $6.27 billion in new debt issuance. These movements suggest a focus on shareholder returns while managing the capital structure with care. The end cash position rose to $7.38 billion, up from $6.28 billion a year ago, signaling a modest but solid increase in liquidity. All in, the cash flow shows Comcast maintaining strong operational performance while balancing investment, debt, and capital returns.
Analyst Ratings
📉 Comcast has recently faced mixed reactions from analysts, with some expressing caution over near-term growth potential. Wells Fargo downgraded the stock from “Equal Weight” to “Underweight,” trimming its price target from $37 to $31. The concern? Rising mobile-related costs are seen as a drag on broadband growth, while NBCUniversal continues to navigate headwinds. Their forecasts for Comcast’s EBITDA in 2025 and 2026 fall about 4% to 5% below the broader market consensus, signaling a more conservative view of the company’s earnings power in the next couple of years.
📈 On the other hand, Scotiabank remains more optimistic. It held steady with a “Sector Perform” rating and nudged its price target up slightly from $44.50 to $45. Analysts there view the telecom and media space as offering relative stability, even if subscriber growth may soften due to broader demographic trends like slower immigration.
📊 As it stands, the average 12-month price target from analysts tracking the stock is $44.60. That’s a notable jump from the current price, pointing to a potential upside of around 34%. The range of estimates is wide, from as low as $31 to as high as $60, which shows just how split the outlook is. But the consensus rating? It’s still a buy.
Earning Report Summary
Comcast’s latest quarterly earnings were a bit of a mixed bag, with a few bright spots and some challenges that the company is clearly working through. The numbers came in above what many were expecting, even as the company continues to feel the effects of shifting consumer habits and tighter competition, especially in broadband.
Stronger-than-expected earnings, but broadband struggles
The company posted adjusted earnings per share of $1.09, which was a solid beat and showed nearly a 5% improvement from the same time last year. Revenue landed just under $30 billion for the quarter, slightly lower than last year but still higher than the market had forecast. That’s the good news.
Where things got a little sticky was in broadband. Comcast lost about 199,000 internet subscribers, and that was more than analysts had anticipated. The decline was tied in large part to aggressive promotions from wireless carriers bundling mobile and internet plans. To fight back, Comcast has rolled out five-year price locks and new pricing tiers aimed at keeping customers on board. It’s a direct counter to the rising pressure in the market.
Peacock gains traction and parks look to bounce back
One of the standout stories from the quarter was Peacock, Comcast’s streaming platform. Subscriber numbers jumped to 41 million, helped along by a new partnership with Charter. More importantly, the service is burning less cash — its adjusted core loss shrank to $215 million from over $600 million the year before. It’s not profitable yet, but the trend is clearly heading in the right direction.
On the theme parks side, revenue dipped a bit — down just over 5%. Lower attendance was blamed in part on the January wildfires near Los Angeles, which understandably affected visitor numbers. That said, Comcast isn’t hitting the brakes. In fact, it’s getting ready to open a massive new park in Orlando, called Epic Universe, which will include five themed lands and more than 50 attractions. The company’s leaning into experiences to grow this part of the business.
Leadership stays confident in the long-term plan
CEO Brian Roberts shared a fairly upbeat tone about the quarter, pointing to solid earnings, strong free cash flow of $5.4 billion, and progress across several key business units. There’s no denying that Comcast is facing real competition and industry shifts, but management seems focused on adapting rather than retreating. The mix of streaming growth, new pricing strategies in broadband, and the upcoming launch of Epic Universe all suggest they’re playing a longer game.
All in all, it was a quarter that showed Comcast is holding its ground while laying the foundation for what comes next. It’s not without its challenges, but the company isn’t standing still — and that’s what investors will be watching closely.
Chart Analysis
The chart for CMCSA over the past year tells a story of a stock that’s been through a clear rotation, both in sentiment and technical structure. There’s a lot going on here, and each section reveals something about the current tone of the market toward the name.
Price action and moving averages
Looking at the price movement, the stock made a solid run into the end of last year, peaking near 46 before beginning a sharp decline. That upward leg between late summer and December shows a confident rally with increasing price momentum, supported by a rising 50-day moving average. But that trend didn’t last. As the 50-day MA peaked and began to roll over in January, the red line crossed below the 200-day MA, forming a death cross in February — a bearish signal that often reflects a shift toward more cautious sentiment.
Since then, the price has consistently stayed under both moving averages, with several failed attempts to break back above the 50-day line. That signals a clear downtrend with resistance showing up almost every time the stock tries to recover. This kind of pattern is often associated with a longer cooling-off period after a strong prior run.
Volume and momentum
Volume has remained fairly consistent, with occasional spikes that align with earnings announcements or broader market events. Notably, those surges haven’t come with strong price rebounds, which suggests that buying interest hasn’t been sustained.
The RSI (Relative Strength Index) dipped below 30 briefly in early January, hitting oversold territory, and has hovered mostly between 30 and 50 since then. The inability of RSI to reach above 70 since last fall adds to the sense that the stock is under pressure, even if it isn’t collapsing.
Overall structure and tone
The overall setup suggests the stock is in a markdown phase — the stage that typically follows distribution in market cycles. The recent candles show more lower wicks than upper, indicating that while there’s some intraday buying interest, it hasn’t been strong enough to push the price back into a sustainable rally. This aligns with the ongoing drift beneath both moving averages and a Relative Strength Index that continues to show muted momentum.
Unless there’s a significant shift in volume or price action strong enough to retake the 50-day line and hold it, the current chart behavior leans more toward consolidation or further downside, rather than a new uptrend emerging in the near term.
Management Team
Comcast’s leadership is anchored by Brian L. Roberts, who serves as Chairman and CEO. Having been with the company for decades, Roberts has overseen its transformation from a regional cable operator to a global media and technology powerhouse. Supporting him is Jason S. Armstrong, the Chief Financial Officer, responsible for guiding the company’s financial strategy and ensuring long-term capital discipline. Michael J. Cavanagh holds the position of President, bringing extensive operational and financial experience to the leadership table.
Other key figures include David N. Watson, who serves as the CEO of Comcast Cable, and Dana Strong, leading Sky as Group CEO. This leadership team combines stability with innovation, balancing experience in traditional segments like cable and broadband with forward-thinking strategies in streaming, content, and digital infrastructure. Their decisions will continue shaping Comcast’s evolution as it responds to a rapidly shifting media landscape.
Valuation and Stock Performance
As of the latest trading session, Comcast (CMCSA) closed at $33.19, reflecting a daily drop of 3.71%. That puts the stock nearly 27% below its 52-week high of $45.31. Despite this, the company maintains a sizable market cap of $130.33 billion, reaffirming its scale and influence in the industry.
Comcast’s valuation metrics point to a stock that may be flying under the radar. With a forward price-to-earnings ratio of 8.05, the market appears to be pricing in slower growth or sustained pressure, which may not fully account for the company’s free cash flow strength and earnings stability. Analysts currently have a consensus 12-month price target of $44.60, suggesting meaningful upside from current levels if the company can execute on its key growth initiatives and manage competitive threats effectively.
Risks and Considerations
There’s no ignoring that Comcast is facing real headwinds. The loss of 199,000 broadband subscribers in the most recent quarter came in worse than expected, signaling rising competition from wireless providers bundling mobile and home internet. The shift away from cable TV is also accelerating, with 427,000 video customers cutting the cord in the same period. These are long-term structural issues that the company is actively trying to offset through new pricing models and strategic partnerships.
Regulatory matters also deserve attention. Investigations into the company’s diversity and inclusion practices have surfaced, and while they may not pose immediate financial threats, they do add to the list of reputational and compliance challenges. Data privacy is another area to watch. Past breaches, although addressed, have left a mark and serve as reminders of the importance of ongoing cybersecurity investments.
These pressures could weigh on near-term performance, and they underscore the need for Comcast to remain nimble while staying committed to its long-term strategy. Execution, not just vision, will be the key.
Final Thoughts
Comcast finds itself at a transition point. It’s no longer just a cable company, and its future will depend on how well it adapts to changing customer expectations and consumption habits. With a leadership team that has both deep roots and forward vision, and a business model that still generates strong free cash flow, Comcast has tools to work with.
What’s encouraging is the company’s effort to build new pillars of growth—streaming, theme parks, and technology upgrades in broadband—all while maintaining disciplined capital allocation. Risks are real, but so is the opportunity. The market may currently be underestimating Comcast’s ability to evolve. As always, sustained performance will depend on smart execution, especially in a media landscape that won’t stop changing anytime soon.