Why These 10 Dividend Stocks Are Declining?

5. Nexstar Media Group, Inc. (NASDAQ:NXST)

Annual dividend yield: 4.88%

Ex-Dividend Date: February 12, 2025

Number of Hedge Funds: 27 (2024 Q3)

Quarterly dividend amount: $1.86

Nexstar Media Group, Inc. (NASDAQ:NXST), an American media giant, experienced a decline in its stock price of almost 10% in the past year. Hedge fund holdings went down from 34 in the 2nd quarter of 2024 to 27 in the 3rd quarter, signaling the loss of interest among hedge fund holders.

However, the company’s healthy dividend culture gives hope. With a solid payout ratio of 28.23%, Nexstar Media Group, Inc. (NASDAQ:NXST) distributes close to one-third of its earnings as dividends to shareholders. Perry Sook, the Founder, Chairman, and Chief Executive Officer of the company, stated the following:

“Nexstar’s twelfth annual dividend increase highlights the significant free cash flow of our businesses and capital allocation policies which have consistently demonstrated our commitment to delivering increased returns to our shareholders. Our industry leadership and operating practices combined with the 2025 cash dividend increase, opportunistic share repurchases, debt reduction, and potential growth M&A are key components in our strategies to enhance shareholder value.”

Nexstar Media Group, Inc. (NASDAQ:NXST) also outperforms the communication sector with an annual dividend yield of 4.88 %, which is more than the industry average of 2.62%. Despite a decline in stock price and hedge fund interest, the strong dividend policy of the company contributes to shareholder confidence alongside capital strategies.