Can You Count On Comcast’s 5.3% Yield?

There are very few companies whose customer service is more frustrating than Comcast‘s (CMCSA).

It probably wasn’t always that way. The company began in 1963 in Tupelo, Mississippi, selling cable systems. It acquired a Muzak franchise in 1968 and went public in 1972. It launched HBO in 1977 to 20,000 customers.

For those who don’t know, I have some strange side hustles. I’m a boxing ring announcer and have appeared on HBO many times when they used to broadcast big boxing events.

Despite my affinity for HBO, I have never been a fan of Comcast.

Having been stuck with them for years for internet and other services, I can’t even count the number of times I wanted to throw my phone in frustration while navigating their endless maze of automated voice prompts in search of someone who might provide some help other than telling me to unplug my modem and plug it back in.

Shareholders must be equally frustrated, because the stock has been nearly cut in half over the past three years and is down 59% from its all-time high in 2021.

The bright spot for investors is that Comcast pays a big 5.3% dividend yield.

Can investors count on the dividend the way customers can count on terrible customer service?

Last year, Comcast’s free cash flow soared to $19.2 billion from $12.5 billion the year before. This year, analysts forecast a rise to $20.7 billion, a 7.5% growth rate.

Next year, free cash flow is projected to come in at $22.4 billion, so Comcast is growing its free cash flow at a respectable rate.

In 2025, the company paid $4.9 billion in dividends for a low payout ratio of 25%. This year, it will pay just about the same amount, with the payout ratio dipping to 24%.

That is a very big buffer. Even if free cash flow were to tumble, the company would still be able to afford its dividend.

Comcast pays a $0.33 per share quarterly dividend, which comes out to a 5.3% annual yield.

The company has raised the dividend every year since it reinstated it in 2008 after halting it in 1999.

Growing free cash flow, a low payout ratio, and 18 years in a row of dividend increases mean that while Comcast may be one of the most hated companies in America (and probably not too well-liked by investors who have seen the share price go down), investors who are focused on the dividend have nothing to worry about.

The dividend is very safe.

Dividend Safety Rating: A