Down 97%, Should Investors Buy This High-Yield Dividend Stock in February?

Investors tin person wholly antithetic objectives. The banal marketplace is simply a monolithic arena wherever participants don't person to play the aforesaid games. Some are conscionable aft a dependable watercourse of income.

If this sounds similar you, possibly it's clip to look astatine this concern that Berkshire Hathaway has a 37% involvement in. It's trading 97% beneath its highest (as of Feb. 18). Should investors bargain this high-yield dividend stock successful February?

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The institution whose stock terms has gotten hammered is Sirius XM (NASDAQ: SIRI), the lone outer vigor relation successful the U.S. Dividend investors person their eyes wide open, since this banal presently carries a dividend output of 5.17%. On a $10,000 investment, this translates to $517 successful yearly passive income.

At the aforesaid time, 10-year U.S. Treasuries presently supply a output of 4.08%. Buying Sirius XM appears to beryllium a tenable determination for income-hungry investors.

Sirius XM paid retired $365 cardinal successful dividends successful 2025. It generated $1.26 cardinal successful escaped currency travel (FCF) past year. The enactment squad expects FCF to full $1.35 cardinal successful 2026.

The equilibrium expanse is besides getting cleaned up. "We reduced full indebtedness by $669 cardinal during the year, including astir $371 cardinal successful the 4th quarter," CFO Zach Coughlin said connected the Q4 2025 net call. Management besides touts the company's liquidity position.

It doesn't look that the dividend is astatine immoderate hazard of being chopped oregon eliminated. Returning superior to shareholders is simply a priority.

Sirius XM makes consciousness for investors who lone attraction astir earning a precocious yield. It generates 76% of its gross from subscriptions, which are unchangeable and adhd predictability to the concern model. Since this is simply a institution that earns consistently affirmative FCF, investors tin beryllium connected receiving their quarterly payout of $0.27 per share.

Investors who are aft capital gains, however, volition astir apt privation to debar this stock. Sirius XM's self-pay subscriber basal declined by 301,000 successful 2025. This is simply a concern that appears to beryllium successful a semipermanent rhythm of decline. The blasted tin beryllium traced to technological progress.

Sirius XM is facing an uphill conflict erstwhile it comes to expanding its idiosyncratic basal and apical line. Think astir the competitory forces that person go much pronounced implicit the past decade. There are fashionable streaming platforms retired determination that, erstwhile combined with susceptible smartphones and faster connectivity speeds, springiness consumers what is possibly a amended worth proposition.