To attain an annual income of $1,000 in dividends from Sirius XM shares, discover the needed quantity.
Want to know how many Sirius XM shares you need for a grand annual dividend? Let's break it down, no-holds-barred style.
First thing's first, many investors check out the dividend history, payout rate, and financial health of a company. But if you're after the annual cash reward, you'll want to understand Sirius XM's (SIRI) quarterly payout and reverse stock split.
Quarterly Dividends, Demystified
With the recent 1-for-10 stock split, Sirius XM now coughs up approximately $0.27 per share every quarter. This equates to a yearly dividend of $1.08 before considering the reverse split.
Calculating the Quantity
So, how many shares will lock in that jaw-dropping $1,000 figure annually? It's quite straightforward: just divide $1,000 by the annual dividend $1.08.
A divvying by 1.08 yields approximately 926 shares. Now, we can't have a piece of a share, so round up to the nearest whole number. One-thousand twenty-seven francs—oops, wrong currency—make that one-thousand twenty-seven shares.
Financial Statements, Checked
On the financial front, Sirius XM generates enough free cash flow to keep the dividends flowing. During the first nine moons of 2024, it mustered a cool $499 million in FCF, while doling out $51 million in dividends.
Sirius XM has an above-average dividend yield, shooting up to a bright 4.7%. This is more than triple the S&P 500's dim 1.2%.
Sector Overview
With a strong satellite radio business and flourishing podcast streaming segment, Sirius XM brings in the revenues mainly through advertising. In the competitive jungle, the company's revenue growth has been as slow as a sloth in mud.
During the third quarter, revenues slid a hefty 4.4% to hit $2.2 billion. Management also scaled down the revenue expectation by $75 million, lowering it to less than $8.7 billion. Consequently, the stock price has plummeted an astounding 60% over the past year.
In conclusion, while the mouth-watering dividend yield may be alluring, the derailed results make it a no-fly zone in this investor's book.
- To calculate the number of Sirius XM shares required for a grand annual dividend, you simply divide $1,000 by the annual dividend amount of $1.08.
- The recent 1-for-10 stock split in Sirius XM means the company now pays out approximately $0.27 per share every quarter, resulting in a yearly dividend of $1.08 before considering the reverse split.
- Investors interested in Sirius XM's dividend history, payout rate, and financial health can view these details on the company's financial statements, which are available on their dashboard.
- Sirius XM's strong financial position allows them to consistently pay out dividends, as demonstrated by their ability to generate $499 million in free cash flow during the first nine months of 2024, with dividend payouts accounting for only $51 million.
