Time Warner Cable
Last week, Time Warner Cable announced a 16.67% dividend hike, bringing the firm's yield to 3%.
With nearly a quarter of U.S. householders in TWC's operation regions, the firm has massive scale that few alternatives can offer. Like most cable operators, TWC's network is relatively modern and benefits from significant capacity over coaxial cable -- something that firms like Verizon (VZ) and AT&T (T) are having to spend mountains of capital on to achieve for their own competing networks. The combination of size (which is crucial for negotiating favorable rates for channels) and dry powder (being used on the company's $3 billion acquisition of Insight Communications) makes it particularly attractive.Net debt is high but manageable right now. A large cash flow generation engine in TWC's business model should keep the firm's dividend payout flowing to shareholders for the foreseeable future. Time Warner, one of 5 Consumer Stocks Outpacing S&P 500 Growth, was featured recently in " 6 Stocks Reaping the Benefits of Big Buybacks."
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