Sinclair Broadcast Group Inc, ticker SBGI, is a small-cap ($1.7B) entertainment  company operating in the communication services business sector. This is the first of five communication candidates competing for the forty-seventh slot in my Viital folio. It is my first ever report on SBGI for my Viital portfolio, or any of my previous portfolios.

Sinclair Broadcast Group, Inc. was founded in 1986 and is headquartered in Hunt Valley, Maryland. It is the second-largest television station operator in the U.S., with 185 stations in 85 markets. Of the firm's over 600 channels, over 150 are affiliated with the four national broadcasters--Fox, ABC, CBS, and NBC --with over 80 other channels on networks aligned with CBS (CW) and Fox (MyNetworkTV).

After the 2019 purchase of Fox Sports Networks from Disney, Sinclair is now the largest owner or operator of regional sports networks with 21 Fox-branded RSNs covering 42 NBA, MLB, and NHL teams along with the new home of the Chicago Cubs, Marquee Sports Network.

The firm also owns the Tennis Channel, four multicast networks, and professional wrestling promotion Ring of Honor.

The company has two reportable segments: Broadcast and Local sports.

Additionally, the company provides technical services to the broadcast industry; and owns various non-media related investments, such as private equity, mezzanine financing, and real estate investments.

Three key data points gauge any dividend equity or fund such as Sinclair Broadcast Group, Inc:

(1) Price (2) Dividends (3) Returns. Those three basic keys best tell whether any company has made, is making, and will make money.

SBGI Price

Sinclair’s price per share was $24.76 as of yesterday's market close.  One year ago its price was $29.22. Thus, SBGI’s share price decreased $4.46 or about 15.3% in the past year.

If Sinclair’s stock trades in the range of $20.00 to $30.00 this next year, its recent $24.76 share price might rise by $4.24 to reach $29.00 by next year. My $4.24 upside estimate is $1.44 below the median of one-year targets aimed at by nine analysts covering SBI  for brokers.

SBGI Dividends

Sinclair’s most recently declared quarterly dividend of $0.25 is payable September 15th, to shareholders on record as of August 31st.  You’ve a week to get in on this dividend.

Since July 15, 2004 SBGI has paid quarterly variable dividends increasing at least annually.  The current forward looking quarterly dividend of $0.25 projects an annual dividend of $1.00 yielding 4.04% as of yesterday's $24.76 share price.

SBGI Returns

Adding the $1.00 SBGI annual dividend to my estimated one-year price upside estimate of $4.24 shows a $5.24 potential gross gain, per share, to be reduced by any costs to trade Sinclair shares.

At yesterday's $24.76 closing price, a little under $1000 would buy 40 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.25 per share.

Subtract that maybe $0.25 brokerage cost from my estimated $5.24 gross gain estimate per share results in a net gain of $4.99 X 40 shares = $199.60, for a 19.9% net gain including a 4.04% forward looking annual dividend yield.

Over the next year our $1K investment in Sinclair shares should generate $40.40 in cash dividends. A single share of SBGI stock bought at Friday's $24.76 price is almost 2 times LESS than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is prime time to pick up Sinclair Broadcast Group Inc shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is 1.63 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign. Now IS the time.

All of the estimates above are speculation based on the past history of Sinclair Broadcast Group Inc. Only time and money invested in this stock will determine its market value.

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