Dividend‐policy comparison
Lamar Advertising (LAMR) has just announced a $1.55 quarterly cash dividend (≈ $6.20 per share for 2025). With the stock trading around $45 – $48 per share in late‑August, that translates to a ~13–14 % annual dividend yield—well above the average for the outdoor‑advertising universe.
| Company (US) | 2024‑25 dividend (per share) | Yield* |
|---|---|---|
| Lamar Advertising | $1.55 qtr (≈ $6.20 yr) | ~13‑14 % |
| Outfront Media (OUTFRNT) | $0.75 qtr (≈ $3.00 yr) | ~6‑7 % (stock ≈ $42) |
| Clear Channel Outdoor (CCO) | No regular dividend (growth‑focused) | N/A |
| JCDecaux (JCD) – Euro‑listed | €0.53 qtr (≈ €2.12 yr) | ~3‑4 % (stock ≈ €45) |
*Yield based on prevailing market price at the time of the announcement.
Interpretation
- Lamar’s policy is the most generous in cash return among its US peers and even dwarfs the modest quarterly payouts of Outfront Media.
- Clear Channel and JCDecaux have historically relied on reinvestment rather than shareholder cash, so Lamar stands out as a yield‑oriented, cash‑flow‑rich player in the sector.
- This high yield can attract income‑seeking investors and create a floor for the share price during periods of market stress, especially when the broader advertising cycle slows.
Trading implications
- Long‑bias: The attractive dividend offers a “carry” component in addition to the sector’s modest growth prospects. A pull‑back to the $45‑$46 level (near the 200‑day moving average) could be a more attractive entry with the dividend coupon supporting upside.
- Watch the payout ratio: If earnings begin to wane, maintaining a >50 % payout could strain cash flow; monitor quarterly earnings and free‑cash‑flow yields.
- Relative valuation: With peers trading at 12‑14 × EV/EBITDA, LAMR’s premium is justified primarily by the dividend. If the yield compresses (e.g., dividend cut), downside risk rises.
Bottom line: Lamar’s dividend policy is significantly more generous and regular than the sector norm, providing a built‑in return for investors and a potential price‑support level. For a dividend‑biased portfolio, consider building or adding to a position on any short‑term pull‑back; keep an eye on cash‑flow metrics to guard against an unsustainable payout.