Nov. 26 at 8:55 PM
Charter Communications is down 40% in 2025, one of the S&P 500’s worst performers, despite strong free cash flow. The company has repurchased
$78 billion of stock since 2016 at an average price of
$441, well above the current ~
$200 share price. Media mogul John Malone suggested Charter consider a large dividend, similar to Verizon, which could yield around 10% while still funding debt reduction or buybacks.
The company faces competitive pressure from fiber and wireless providers, declining broadband subscribers, and high leverage of ~
$95 billion in debt versus less than
$30 billion in equity. Third-quarter revenue fell 1% to
$13.7 billion, with adjusted EBITDA also down 1%. Charter’s P/E ratio is among the lowest in the S&P 500 at ~5x projected 2026 earnings. Analysts note that a sizable dividend could attract investors, and its durable franchise and low valuation make it appealing for value-focused buyers.
$CHTR $SPX $CMCSA $BRK.B
