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Communication services stocks can be a perfect choice for investors seeking reliable income. Nexstar Media Group, Verizon Communications, and Interpublic Group of Companies have distinguished themselves with consistent payments and regular dividend increases. Furthermore, they offer solid dividend yields of around 3-6%.

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Nexstar Media Group

Nexstar Media Group, Inc. (NASDAQ:NXST) operates as a diversified media company that produces and distributes engaging local and national news, sports and entertainment content across television and digital platforms in the United States. It is the largest television station owner-operator in the United States, with over 200 stations in 116 markets. Of its 200 stations, 155 are affiliated with the four national broadcast networks: CBS, Fox, NBC, and ABC.

Nexstar Media has increased its dividends consecutively since 2013, with the most recent dividend hike being announced earlier this year. According to the company's Jan. 26 announcement, it significantly raised the quarterly dividend by 25% to $1.69 per share, which is equal to $6.76 annually. Currently, the company's dividend yield is 3.72%.

The company's annual revenue (as of March 31, 2024) is $5 billion. According to the company’s Q1 2024 earnings report, it generated revenues of $1.28 billion and net income of $167 million, roughly in line with consensus estimates.

"Nexstar is off to a strong start in 2024, delivering the highest first quarter net revenues in the Company's history and once again outpacing consensus expectations for Adjusted EBITDA and Adjusted Free Cash Flow," said Perry A. Sook, Chairman, CEO and Founder of Nexstar Media Group.

"Looking ahead, we remain confident that Nexstar will deliver another strong year of financial results and expect to build momentum through 2024, given the anticipated record-level of political spending this presidential election cycle," added Sook.

If you are looking for dividend ideas, here is a diversified mix of two more companies, similar to Nexstar Media, that offer attractive yields.

Verizon

Verizon Communications Inc. (NYSE:VZ) engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. The firm serves about 93 million postpaid and 21 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 29 million homes and businesses and serve about eight million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers’ networks.

Verizon has consistently raised its dividends every year since 2005. The company pays a quarterly dividend of $0.665 per share, equating to $2.66 annually. The current yield on the dividend stands at 6.33%.

Goldman Sachs believes that telecom stocks, including Verizon, are set to soar, driven by strong wireless execution and positive pricing dynamics.

The company's annual revenue (as of March 31, 2024) is $134 billion. According to the company's most recent earnings report, announced on April 22, it generated revenues of $33 billion, and posted an EPS of $1.15. While revenues slightly missed expectations, the quarterly EPS came in better than the consensus estimate.

"We are on track to meet our financial guidance and to deliver positive Consumer postpaid phone net adds for the year. Our fixed wireless subscriber base is continuing to grow rapidly, and our network remains the best in the industry, by far," said Verizon Chairman and CEO Hans Vestberg.

Its upcoming quarterly earnings report is scheduled for July 22. Wall Street analysts estimate a quarterly EPS of $1.15 and revenue of $33 billion.

Investor alert: Triple-net properties can put a check in your pocket every quarter—a can’t-miss opportunity for accredited investors.

Interpublic Group of Companies

The Interpublic Group of Companies, Inc. (NYSE:IPG) provides advertising and marketing services worldwide. It offers traditional advertising services along with digital and other services such as public relations through various acquisitions. IPG has made these services available in over 100 countries. The company generates about 65% of revenue in the U.S. and 17% in the UK and Europe.

The Interpublic Group of Companies has raised its dividends every year for the last 11 years. According to the company's most recent dividend announcement on Feb. 8, its Board of Directors hiked the quarterly dividend from $0.31 to $0.33 per share, or $1.32 annualized, with a yield of 4.37%.

As of March 31, 2024, Interpublic Group of Companies' annual revenue stood at $10.9 billion. As per the company's Q1 2024 earnings report, released on April 24, it generated revenues of $2.50 billion and EPS of $0.36, both above consensus estimates.

"The first quarter results we are reporting today represent a solid start to the year and are consistent with our 2024 targets. Our data and tech driven media offerings, health care marketing, and PR capabilities continued to perform strongly, driving our growth. Marketer sentiment has begun to improve relative to the back half last year, and the new business pipeline is more active," said CEO Philippe Krakowsky.

In summary, Communication services stocks like Nexstar Media Group, Verizon Communications, and Interpublic Group of Companies represent solid investment choices for those seeking reliable income and long-term stability. Their high dividend yields of 3-6%, combined with their strong track records of consistent dividend hikes, make them particularly appealing to income-focused investors.

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This article 3 Communication Services Stocks With Solid Dividend Yields: Nexstar Media, Verizon, And Interpublic Group of Companies originally appeared on Benzinga.com