4% Dividend Yield + 10% in Buybacks
The biggest company in global marketing and advertising is currently on sale.
While most people associate advertising with “Mad Men” or expensive Super Bowl spots, this company has transformed itself into a data and technology firm.
It manages the marketing for the world’s biggest brands, tracking 2.6 billion people to ensure every ad dollar results in a real-world sale.
Why the Market is Nervous (and Why We Aren’t)
The market is currently handing us a high yield because it’s worried about three things:
AI Disruption: Fears that Generative AI makes ad agencies obsolete.
Merger Complexity: A recent acquisition of a major rival ($10+ billion)
Economic Fears: The classic worry that ad budgets are the first to be cut in a recession.
But here is what the market is missing: This company is aggressively using AI to create content 25–55% faster, and management just doubled their expected merger savings to $1.5 billion.
The Opportunity
For dividend investors, these fears have pushed the yield to a very attractive 4%.
More importantly, management just sent a massive signal that the stock is too cheap.
They announced a $5 billion buyback program, including an immediate $2.5 billion accelerated repurchase, effectively buying back 10% of the entire company at once.
Current Yield: 4.0%
Payout Ratio: <50% (Very safe)
Expected Annual Return: 17.3%
Is this the time to buy the world’s largest advertising player at a discount?
We think so, and we are adding it to our High Yield Portfolio today.
🔓 Unlock the Full Investment Case
Want to know the name of this company, the ticker symbol, and see our full 10-point breakdown?
The doors for Compounding Dividends will reopen on the 24th of February.
There will be discounted memberships, plus a lot of exclusive bonuses.
You don’t want to miss it? And you also want to receive all the exclusive bonuses?
One Dividend At A Time,
-TJ
Used sources
Interactive Brokers: Portfolio data and executing all transactions
Fiscal.ai: Financial data
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