This Powerful Company Just Declared a 100% Dividend Raise. Should You Buy?

Core Viewpoint - TKO Group Holdings has announced a remarkable 100% increase in its quarterly dividend, reflecting strong financial performance and lucrative media rights deals for its key businesses, WWE and UFC [2][3][12]. Company Overview - TKO Group Holdings is a newly formed conglomerate primarily known for its two major businesses: World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) [5]. - Both WWE and UFC have significant audience engagement, leading to lucrative broadcasting deals with major networks [6][10]. Financial Performance - TKO's second quarter revenue increased by nearly 10% year over year, exceeding $1.3 billion, driven by a 21% revenue rise in WWE [12]. - The company reported a substantial 63% increase in net income, reaching $1.17 per share [12]. Media Rights Deals - WWE signed a five-year exclusive deal with Walt Disney for ESPN, valued at approximately $1.6 billion, or $320 million annually [7]. - WWE's current deal with Comcast for its Peacock service is reportedly worth over $1 billion total, translating to over $200 million annually [8]. - A new broadcasting deal for WWE's Raw with Netflix is valued at "in excess of $5 billion" over ten years, averaging at least $500 million per year [9]. - UFC secured a broadcasting deal with Paramount Skydance worth $7.7 billion over seven years, averaging $1.1 billion annually [11]. Dividend Announcement - TKO's new quarterly dividend will be $0.76 per share, effective from the next payout on September 30, with a yield of 1.6% based on the most recent closing price [14].