Key Takeaways:
- Comcast currently offers a 3.7% dividend yield today, which is nearly the highest dividend yield the stock has offered in the past 5 years.
- Comcast has raised its dividend for 18 consecutive years and dividends are expected to continue growing in the mid-single-digits.
- Analysts think the stock has about 25% upside today.
- Get accurate financial data on over 100,000 global stocks for free on TIKR >>>
Comcast doesn’t get much attention from investors these days, but that’s exactly why long-term dividend investors like it.
The business has quietly raised its dividend for nearly two decades while consistently generating strong cash flows in an industry with high barriers to entry.
Now, with the stock trading at a discount, Comcast could be one of the better dividend opportunities hiding in plain sight.
Why Has Comcast’s Stock Dropped?
Comcast is down 15% in the past year, mostly due to concerns around its broadband business. The company has started to feel the pressure from new competitors in the space, especially as wireless providers expand into home internet.
At the same time, operating costs have been climbing due to spending on content and marketing. This has led to cash flow coming under some pressure as Comcast continues to invest in its network while returning capital to shareholders.
However, Comcast’s long-term business outlook remains solid, which means the recent slowdown could be a good time to consider adding Comcast stock.
Analysts Think The Stock Has 25% Upside Today
Wall Street hasn’t given up on Comcast.
Right now, analysts have an average price target of about $43/share, which suggests that analysts see about 25% upside for the stock since it trades around $34/share.
This optimism comes from Comcast’s strong cash flows and long-term investments in broadband and streaming.
Here’s why Comcast looks like a promising dividend stock today:
1: Dividend Yield
Comcast currently offers investors a 3.7% dividend yield.
That’s nearly the highest dividend that the company has offered in the past 5 years.
Comcast’s yield has been increasing in recent years as dividends had high-single-digit annual increases.
Find high-quality dividend stocks that are even better than Comcast today. (It’s free) >>>
2: Dividend Safety
Comcast currently has a very conservative 29% dividend payout ratio.
We like to see a payout ratio below 70%. A 29% payout ratio is very healthy and conservative because it shows that less than a third of the company’s earnings are being used to fund the dividend.
This gives Comcast plenty of breathing room to grow its payout even during slower earnings periods. It’s a solid sign of dividend safety in a competitive industry.
See Comcast’s full growth forecast. (It’s free) >>>
3: Dividend Growth Potential
Comcast has raised its dividend for 18 consecutive years.
Looking ahead, analysts expect earnings-per-share growth to recover to high-single-digits growth in 2026 after EPS dips in 2025. Dividends are expected to increase in the mid-single-digits as the company continues to raise dividends by 8 cents annually.
Comcast is delivering decent dividend growth, and this is supported by earnings growth.
Some investors might hope for faster dividend growth, especially given the company’s low payout ratio. But, slower dividend growth means the company isn’t stretching too thin and can keep raising the dividend consistently without putting pressure on the balance sheet.
Comcast stock currently trades at just 8 times next-year’s expected earnings, which is very low for a business that’s expected to return to high-single-digits annual earnings growth.
TIKR Takeaway
Comcast might not be a flashy growth story, but its strong cash flow, consistent dividend hikes, and undervalued stock price make it worth a closer look for long-term investors. Despite near-term broadband pressure, the business remains fundamentally solid.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
