Cable One (CABO) DIvidends Date & History

Key Takeaways

• Cable One, Inc. (CABO) suspended its quarterly dividend in May 2025 to prioritize debt reduction and growth investments.
• Prior to suspension, the stock offered a trailing dividend yield exceeding 11%, based on $11.80 annual payout ($2.95 quarterly).
• The payout ratio reached over 450% amid net losses, raising sustainability concerns.
• Positive operating cash flow ($565 million TTM) and levered free cash flow ($262 million TTM) provide a foundation for potential future dividends.
• Last dividend paid March 7, 2025; no resumption announced as of Q1 2026 earnings.

Dividend Overview

Cable One, Inc. (CABO), a provider of broadband, video, and voice services primarily in smaller U.S. markets, previously maintained a quarterly dividend policy. Before its suspension in 2025, the company paid $2.95 per share each quarter, equating to $11.80 annually and delivering yields above 11% at recent stock prices around $91. This positioned CABO as a high-yield play in the communications sector, appealing to income seekers. However, with no current dividend as of May 2026, it no longer qualifies as a dividend stock. The halt reflects a shift from payouts to balance sheet strengthening amid high debt and revenue pressures.

Dividend History and Growth

Cable One initiated dividends following its 2015 spin-off from Graham Holdings, starting modestly and growing steadily. The quarterly payout reached $2.95 by 2024, flat for several quarters, with the final payment on March 7, 2025 (ex-date February 18, 2025). Earlier history showed increases averaging around 8-9% annually over eight years, but no long-term growth streak like Dividend Aristocrats. Payments were consistent quarterly until the Q1 2025 earnings announcement suspended them indefinitely, citing needs for debt paydown. No cuts preceded the pause; instead, yields rose with declining share prices.

Dividend Sustainability and Payout Ratio

Prior to suspension, sustainability was strained. The payout ratio ballooned to 457% on trailing earnings, driven by net losses (profit margin -21.94%) despite solid operating margins (25.33%). High debt levels ($3.11 billion total debt, debt-to-equity 210%) and leverage pressured finances. However, operating cash flow ($565 million TTM) and levered free cash flow ($262 million TTM) comfortably covered prior payouts (~$65 million annually based on shares outstanding). Q1 2026 results showed debt repayment progress ($90.6 million), with Adjusted EBITDA at $183.3 million, suggesting improved stability for potential resumption if trends continue.

Dividend Compared to Industry Peers

In the cable and broadband industry, dividends are rare. Larger peers like Charter Communications (CHTR) pay none, focusing on growth and buybacks. Comcast (CMCSA) offers a modest ~3% yield, while sector averages hover around 4% for payers. Pre-suspension, CABO's 11%+ yield far exceeded peers (e.g., 8.61% TTM vs. 4.17% peer average), making it a standout high-yield option. Now at 0%, it aligns with non-payers amid competitive broadband pressures.

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Is This Stock Attractive for Dividend Investors?

Cable One, Inc. (CABO) currently holds limited appeal for traditional dividend investors due to the ongoing suspension. Income-focused buyers seeking reliable quarterly payouts may look elsewhere, as the prior high yield was undermined by unsustainable ratios and losses. However, conservative long-term investors tolerant of no near-term dividends could find value if debt reduction ($3.11 billion outstanding) restores profitability—Q1 2026 net income turned positive at $35.8 million. Dividend growth enthusiasts note the historical 8%+ annual increases, but the pause resets any streak. Those prioritizing free cash flow generation (262 million TTM) over immediate income might monitor for resumption, especially versus yieldless peers. Overall, suitability hinges on patience for balance sheet repair amid sector cord-cutting headwinds.

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