Updated 7/21/2025
Nexstar Media Group, Inc. operates as a diversified media company producing and distributing local and national news, sports, and entertainment content on television and digital platforms in the United States. It owns, operates, programs, or provides sales and other services to television and radio stations, and offers television programming services. The company provides video and display advertising platforms through its own and third-party websites, mobile and over-the-top applications, digital media solutions to media publishers and advertisers, and a consumer product reviews platform. It also owns NewsNation, a national cable news network, and WGN-AM, a Chicago radio station, and operates digital multicast networks. Additionally, it engages in digital business and manages real estate assets, including leasing owned office and production facilities. Its stations are affiliates of major broadcast television networks such as ABC, NBC, FOX, CBS, The CW, and MyNetworkTV. The company is headquartered in Irving, Texas.
For dividend investors, NXST presents a solid opportunity in the media sector, with a focus on consistent dividend growth and a strong yield supported by its broadcasting operations.
Key Dividend Metrics
- 📈 Forward Dividend Yield: 4.30%
- 💵 Annual Dividend Rate: $7.44
- 🕰 5-Year Average Yield: 3.50%
- 💰 Payout Ratio: 33.94%
- 📅 Next Dividend Payment: August 22, 2025
- ⚖ Ex-Dividend Date: May 19, 2025
Dividend Overview
NXST is a reliable dividend payer in the media industry, offering a forward yield of 4.30%, which is above its five-year average. This indicates a positive trend for income investors seeking exposure to broadcasting and digital media.
A key supporting factor is its moderate payout ratio of 33.94%, allowing the company to retain earnings for growth while rewarding shareholders. Compared to peers with higher ratios, NXST is positioned well for sustained payouts.
For those prioritizing consistent income with growth potential, NXST’s dividend is sustainable and backed by strong cash flows.
Dividend Growth and Safety
NXST has consistently increased its dividend, with a recent 10% hike to $1.86 per share quarterly in January 2025. Over the past five years, dividends have grown from $0.56 to $1.86 quarterly, reflecting management’s commitment to shareholders.
The payout ratio remains low, providing room for future increases.
The company generates robust free cash flow, with $1.38 billion in levered free cash flow over the trailing twelve months.
With cash reserves of $253 million, NXST has flexibility to maintain dividends despite debt levels.
Dividend safety is strong, supported by increasing cash flows, making it reliable for long-term investors.
Chart Analysis
The recent price action of NXST shows resilience in a volatile market, with the stock maintaining above key support levels amid broader sector challenges.
Price Movement and Trend
NXST has been in a steady uptrend over the past year, though recent sessions show some consolidation. The stock is trading above its 200-day moving average, indicating long-term bullish control, but faces resistance near recent highs.
The closing price of 181.93 is near the day’s highs, suggesting buyer interest. If it breaks above resistance, further upside could follow.
Moving Averages
The 50-day moving average is trending upward, above the 200-day average, signaling a golden cross earlier this year. This bullish indicator suggests sustained momentum.
For long-term investors, staying above the 200-day average confirms the uptrend.
Volume Analysis
Volume has increased on up days, showing strong buyer participation. Recent bounces were on higher volume, supporting a potential reversal if selling eases.
Current volume indicates market uncertainty, but a surge could confirm strength.
Relative Strength Index (RSI)
RSI is in neutral territory, reflecting balanced momentum. It avoided oversold levels recently, hinting at a possible bounce if buyers step in.
If RSI climbs above 60, it could signal stronger upside.
Recent Candlestick Action
The last five sessions show bullish candles with lower wicks, indicating support at lows. Buyers are defending key levels, but upper resistance persists.
A breakout with conviction could lead to higher prices; otherwise, consolidation may continue.
Analyst Ratings
📈 Upgrades:
No major upgrades recently, but maintains include positive ratings.
📉 Downgrades:
No major downgrades reported in recent months.
🎯 Consensus Price Target:
As of the latest data, the consensus 12-month price target for NXST is $197.46, suggesting a potential upside of around 8.53% from current levels. This reflects optimism about digital growth and caution on industry headwinds.
Analyst perspectives highlight the media sector’s dynamics and adaptation challenges.
Earnings Report Summary
Nexstar Media Group released its Q1 2025 earnings, showing mixed results with revenue slightly below expectations but strong profitability in core operations.
Revenue and Profitability
Revenue for the quarter was around $1.23 billion, a 4.4% decline year-over-year. Adjusted EPS held steady, with management controlling costs effectively.
The company continued its dividend growth and share buybacks, demonstrating confidence in cash flows.
Operational Highlights
Digital and advertising segments showed growth, offset by declines in political advertising ahead of 2025.
Looking Ahead
For Q2 2025, NXST expects modest revenue growth, with focus on digital expansion. The company remains optimistic despite competitive pressures.
Overall, the report underscores solid management amid sector challenges.
Financial Health and Stability
NXST’s financial position supports dividend stability, though leverage is a factor.
Revenue stands at $5.36 billion TTM, with positive growth trends.
The debt-to-equity ratio is 301.78%, indicating high leverage common in media.
Low debt burden relative to cash flows allows flexibility in downturns, with strong operating cash flow of $1.31 billion.
Valuation and Stock Performance
Valuation is key for assessing NXST as a dividend stock.
NXST is currently trading at $181.93 per share.
The price-to-earnings (P/E) ratio is 15.85, reasonable for its growth.
The forward P/E suggests earnings expansion.
The stock trades about 10% below its 52-week high. It offers a balance of value and growth for stable investors.
Risks and Considerations
No stock is risk-free, and NXST faces media-specific challenges.
Advertising revenue volatility, especially political ad declines in 2025.
High competition in digital media from streaming and online platforms.
The stock has a beta of 1.03, slightly more volatile than the market.
Dividend yield is attractive but lower than some high-yield sectors.
Despite risks, NXST’s brand and operations provide advantages.
Final Thoughts
For dividend investors, NXST focuses on reliability and growth rather than max yield.
Strong balance sheet with cash flow supports dividends.
Growth potential high due to low payout ratio.
The stock offers income and stability mix.
For steady growth over high yields, NXST is a dependable holding.