Sirius XM Holdings (Nasdaq: Siri) Had a difficult 2024. The share price of the company collapsed by more than 50%, so that around $ 8 billion in value was wiped out. But it seems that the correction has attracted some well -known investors. For example, the holding company of Warren Buffett now owns 2.4 billion dollars in shares, which increased its position in December.
The weakness of the stock prices of Sirius XM has put pressure on the share price dividend yield To historical highlights. Could this be the reason why Buffett is expanding its position? How much will the company pay out this year in dividends?
Sirius XM has not issued a dividend for most of its history. This makes sense if you keep the history of the company in mind. At the end of the 1990s and early 2000s, Sirius XM spent a lot of money on the development of its distribution infrastructure and aggressive marketing for new potential customers. From 2005 to 2010, the company was struggling heavily in the meantime. Many analysts predicted that the company would go bankrupt soon. Instead, Sirius and XM merged – the two largest domestic providers of satellite radio – in a deal that would increase the financial prospects of the combined company enormously.
From 2015, Sirius XM has consistently achieved positive profits and free cash flow for a decade in a row. Despite a bad year in 2024, the company still generated more than $ 900 million in free cash flow. The company used this surplus money in part to finance a quarterly dividend of $ 0.27, which cost around $ 360 million annually.
Siri dividend yield data by Ygrafieken.
As a result of the collapsing share price of Sirius XM, the stable dividend payment increased the dividend yield of the share enormously. At present, an investment of $ 1,000 would yield almost $ 48 in annual dividends. The company recorded a surprising loss last quarter, but the free cash flow position remains solid. The company recently also spent hundreds of millions of dollars on the purchasing of its own shares. The interruption of that program could free up even more money to keep the dividend yield of almost 5% stable.
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