Charter Communications Stock Pays Out $68 Bil – Investors Take Note

CHTR: Charter Communications logo
CHTR
Charter Communications

In the last decade, Charter Communications (CHTR) stock has returned a notable $68 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.

As it turns out, CHTR stock has returned the 36th highest amount to shareholders in history.

CHTR S&P Median
Dividends $0.0 $4.5 Bil
Share Repurchase $68 Bil $5.6 Bil
Total Returned $68 Bil $9.4 Bil
Total Returned as % of Current Market Cap 269.8% 25.0%

Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.

Top 10 Stocks By Total Shareholder Return

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Total Money Returned As % Of Current Market Cap via Dividends via Share Repurchases
AAPL $847 Bil 22.2% $141 Bil $706 Bil
MSFT $368 Bil 10.3% $169 Bil $200 Bil
GOOGL $357 Bil 8.8% $15 Bil $342 Bil
XOM $218 Bil 37.0% $146 Bil $72 Bil
WFC $212 Bil 75.5% $58 Bil $153 Bil
META $183 Bil 10.9% $9.1 Bil $174 Bil
JPM $181 Bil 21.8% $0.0 $181 Bil
JNJ $159 Bil 29.0% $105 Bil $54 Bil
ORCL $158 Bil 31.9% $35 Bil $123 Bil
CVX $157 Bil 47.5% $99 Bil $58 Bil

For full ranking, visit Buybacks & Dividends Ranking

What do you notice here? The total capital returned to shareholders as a percentage of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.

That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for CHTR. (see Buy or Sell Charter Communications Stock for more details.)

Charter Communications Fundamentals

  • Revenue Growth: 1.0% LTM and 1.3% last 3-year average.
  • Cash Generation: Nearly 7.8% free cash flow margin and 24.5% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for CHTR was 0.2%.
  • Valuation: Charter Communications stock trades at a P/E multiple of 4.8

 

CHTR S&P Median
Sector Communication Services
Industry Cable & Satellite
PE Ratio 4.8 24.1

LTM* Revenue Growth 1.0% 6.2%
3Y Average Annual Revenue Growth 1.3% 5.6%
Min Annual Revenue Growth Last 3Y 0.2% 0.2%

LTM* Operating Margin 24.5% 18.8%
3Y Average Operating Margin 23.6% 18.4%
LTM* Free Cash Flow Margin 7.8% 13.5%

*LTM: Last Twelve Months

The table gives a good overview of what you get from CHTR stock, but what about the risk?

CHTR Historical Risk

CHTR isn’t immune to big drops. It fell about 35% in the 2018 correction, 31% during the Covid selloff, and took a 63% hit in the inflation shock. Even with solid fundamentals, this stock can swing hard when the market turns. It’s a reminder that risk sticks around, no matter how good the setup looks.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read CHTR Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.