Highlights

• Cogeco Communications declared a quarterly Dividend of C$1.007 per share, two cents above last year's rate.

• The board's October decision marks the twenty-third consecutive year in which the cable operator has raised its payout.

• Shares closed at C$52.59 on 11 November, implying an indicated Yield of roughly 7.66 per cent.

• Management expects fiscal 2027 Revenue and adjusted EBITDA to decline, while free Cash Flow stays above C$500 million.

Cogeco Communications Inc. (TSX:CCA) has kept a long habit alive. Its board approved a quarterly dividend of C$1.007 per share on 28 October 2026, a 2% step up from C$0.987 and the twenty-third year in a row that the payout has climbed.

The increase lands against a tougher backdrop. The Montreal-based cable and internet operator closed its fiscal year with heavy Impairment charges, slipping revenue in its American footprint and guidance that points lower for 2027. For income-focused investors, the question is how the cash story and the dividend line up.

The new payout and its timetable

The raised dividend is payable on 25 November 2026. Market data show the shares going ex-dividend on 10 November, with the Record Date a day later, so buyers on or after the ex-date will not collect this instalment.

Across fiscal 2026, declared dividends reached C$3.948 per share, up 7.0% from C$3.688 a year earlier. Annualising the new quarterly rate gives C$4.028 per share.

What the yield looks like at Wednesday's close

Cogeco Communications finished the 11 November session at C$52.59. On that price, the indicated yield based on four quarterly payments of C$1.007 works out at about 7.66%.

Trailing figures need care. The twelve-month lookback ending 11 November captures five ex-dates, because one fell on 12 November 2025 and the latest on 10 November 2026. Summing those five gives an inflated 9.42%; using only the four most recent payments, totalling C$3.968, produces about 7.55%.

The shares have drifted from C$55.53 on 5 November, a move that spans the ex-dividend date.

Fourth-quarter and full-year numbers

For the three months to 31 August 2026, revenue eased 1.9% to C$695.5 million and adjusted EBITDA fell 3.8% to C$344.8 million. Net profit attributable to owners rose to C$82.9 million, or C$1.97 per diluted share, while quarterly free cash flow came in at C$104.2 million.

The full year tells a sharper story. Asset impairment charges of C$2,229.0 million pushed the company to a net loss of C$1,473.9 million. Stripping out such items, adjusted Diluted Earnings per Share advanced 7.2% to C$8.51, and annual free cash flow improved 7.1% to C$554.1 million.

Fiscal 2027 guidance sets the tone

Management's outlook, stated in constant currency, calls for revenue to decline by a low to mid single-digit percentage and adjusted EBITDA to fall by a mid to high single-digit percentage. Net Capital Expenditure is pencilled in at C$425 million to C$475 million, with free cash flow projected between C$500 million and C$550 million.

Against that guidance range, the annualised dividend commitment can be weighed alongside the projected free cash flow when assessing coverage.

On an earnings basis, fiscal 2026 dividends of C$3.948 equal roughly 46% of the C$8.51 adjusted diluted figure. The reported loss per share of C$26.28 reflects the non-cash impairments rather than the cash generated during the year, which is why the adjusted and free cash flow measures sit at the centre of most dividend discussions.

No Special Dividend or return of capital appears in the past year, so every payment in the period counts as a regular quarterly distribution.