SiriusXM Holdings (SIRI) DIvidends Date & History

Key Takeaways

• SIRI offers a current dividend yield of approximately 4%, paid quarterly at $0.27 per share.
• Annual dividend of $1.08 per share, with the next ex-dividend date on May 11, 2026, and payment on May 27, 2026.
• Payout ratio around 43-46%, indicating strong earnings coverage for sustainability.
• Free cash flow (FCF) payout ratio under 30%, supported by $1.35 billion expected FCF in 2026.
• Dividend growth of about 15% annually over five years, though recent increases have moderated.
• Higher yield than the media industry average of 2.9%, appealing for income investors.

Dividend Overview

Sirius XM Holdings Inc. (SIRI) maintains a consistent quarterly dividend policy, paying $0.27 per share, which annualizes to $1.08. This delivers a current yield of roughly 4% based on recent stock prices around $27. The company has paid dividends every quarter since initiating them in late 2016, positioning SIRI as a high-yield stock in the media sector rather than a rapid dividend growth contender. The upcoming ex-dividend date is May 11, 2026, with payment on May 27, 2026. This reliable payout appeals to income-oriented investors seeking steady cash returns from a mature audio entertainment provider.

Dividend History and Growth

Sirius XM Holdings Inc. began regular quarterly dividends in November 2016 at modest levels, steadily increasing payouts over time. Recent history shows quarterly payments of $0.266 from mid-2024, raised to $0.27 starting early 2025, reflecting a recent 1-2% annual growth rate. Over five years, the compound annual growth rate (CAGR) has averaged about 15%, driven by earlier hikes from $0.242 in 2023. The company has avoided cuts, maintaining consistency amid subscriber pressures. Long-term strategy emphasizes returning capital via dividends and occasional share repurchases, supported by robust cash generation, though growth has slowed as the business matures.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable, with a payout ratio of 43-46% of earnings, leaving ample room for reinvestment or growth. Free cash flow coverage is even stronger at around 29%, bolstered by Q1 2026 FCF of $171 million and full-year guidance of $1.35 billion. Net leverage stands at 3.6x adjusted EBITDA, with targets to reach low-to-mid 3x by year-end through debt management. Earnings per share comfortably cover the $1.08 annual dividend, and expected EPS growth of 17-20% over three years further supports ongoing payments. Debt levels are manageable at approximately $9.7 billion long-term, with FCF enabling deleveraging alongside distributions.

Dividend Compared to Industry Peers

Sirius XM Holdings Inc.'s 4% yield exceeds the media industry average of 2.9%, making it attractive relative to peers. Streaming rivals like Spotify (SPOT) pay no dividends, prioritizing growth. Traditional media such as Charter Communications (CHTR) and EchoStar (SATS) also offer 0% yields. Terrestrial radio peer iHeartMedia (IHRT) lacks a dividend amid losses. SIRI's profile stands out for income in the audio entertainment space, where many competitors forgo payouts.

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Is This Stock Attractive for Dividend Investors?

Sirius XM Holdings Inc. (SIRI) suits income investors prioritizing high current yield over aggressive growth, given its 4% payout and quarterly cadence. Conservative investors may appreciate the low payout ratio and FCF coverage, signaling resilience despite modest subscriber declines. Those seeking media sector exposure with cash returns will find SIRI's stability compelling, especially versus non-dividend peers. However, long-term holders should note limited dividend acceleration recently, as management balances debt reduction and $1.35 billion 2026 FCF guidance. Balanced portfolios favoring yield with moderate risk may include SIRI, though streaming competition warrants monitoring. Overall, it fits yield-focused strategies without aggressive growth expectations.

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