According to Bloomberg, entertainment company Viacom, Inc. (VIAB) has issued $550 million in unsecured bonds, taking advantage of the current low interest rate environment to borrow money.
The company sold $300 million in 3.25% bonds that mature in 2023. These bonds yield 130 basis points more than US Treasuries with comparable maturities. The company also sold $250 million of 30 year bonds with a 4.875% interest rates; these bonds pay 165 basis points more than similar US Treasuries.
According to the credit rating agency Moody’s, these bonds were rated Baa1, three levels above a speculative rating. According to Standard & Poor’s, these bonds were rated BBB+.
Viacom shares were mostly flat during morning trading on Tuesday. The stock is up +30.06% over the past year.
The Bottom Line
Shares of Viacom (VIAB) have a dividend yield of 1.78% based on Tuesday’s intraday trading price of $61.86 and the company’s annualized dividend payout of $1.10 per share.
Viacom, Inc. (VIAB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
FREE Dividend Stock Newsletter
Get the Dividend.com email newsletter to receive:
- A free copy of our acclaimed report, 5 Rules of Winning Dividend Stock Investing
- Free daily investing tips and picks from Dividend.com CEO Paul Rubillo
- Tons of great market analysis and recommendations