Sirius XM Pays Dividend And Boosts Share Buybacks

Sirius XM (Nasdaq: SIRI) has announced that the company will pay a dividend of $0.011 per share and increase its share buyback program by another $2 billion. Liberty Media (Nasdaq: FWONA), which owned 69% of Sirius XM's shares as of September 30, 2017, stands to benefit greatly from both the dividend and share buyback program. The share buyback program can include open market purchases or buying shares back from Liberty Media. Liberty Media's stake in Sirius XM is held in tracking stocks LSXMA, LSXMB, and LSXMK.
Sirius has been a strong performing stock and over the past few weeks has come into a bit of a spotlight again on an upgrade from Deutsche Bank on prospects of better returns in the future and the fact that Sirius XM has not participated in the upward trend in equities that other stocks have enjoyed. In addition, long time analyst Matthew Harrigan also upgraded the stock and applied an $8 price target.
In some ways the Sirius story has been a very long but good novel. The ownership status of the company has always presented investors with a few different ways to play the stock. On one hand, an investor can buy the Sirius stock straight up, while on another, that same investor can realize an interest in the company through Liberty Media. Presuming that Liberty Media does not sell shares back to Sirius XM, its ownership stake increases with each passing quarter in which Sirius XM buys on the open market.
The dual investing dynamic creates some great... Read more

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