%SiriusXM Holdings (NASDAQ: $SIRI) is a small-cap stock that pays a big dividend to its shareholders.
The New York City-based company is the world’s leading provider of %SatelliteRadio and online radio services. It’s known as the home of Howard Stern and other celebrity radio shows.
Formed in 2008 through the merger of Sirius Satellite Radio and XM Satellite Radio, the combined company today has a virtual monopoly on satellite radio.
However, the stock has been a long-term laggard and is down nearly 60% over the past five years. While disappointing, a hefty dividend yield still makes this a small cap worth considering.
That’s because SIRI stock pays a quarterly dividend of $0.27 U.S. per share, giving it a hefty yield of 4.57%.
Keep in mind that the average dividend yield among companies listed on the benchmark S&P 500 index is a 1.21% and Sirius XM starts to look attractive.
With a market capitalization of just under $8 billion U.S., Sirius XM remains a small-cap concern. But the company has focused on boosting its dividend as its share price has languished.
Dragging the stock lower have been concerns that the growth of satellite radio is limited given that most people access it only in their cars. There are also competitive worries related to audio streaming platforms such as %Spotify (NYSE: $SPOT).
Sirius XM also racked up a hefty debt load after acquiring XM Satellite Radio. The company’s debt as of March 2025 stood at $10.46 billion U.S., giving it a debt-to-equity ratio of 93.3%.
Still, investors looking to generate income could do worse than Sirius XM’s big dividend.
It’s worth noting that SIRI stock has a notable shareholder in legendary investor Warren Buffett.
A notorious dividend hound, Buffett currently owns $2.83 billion U.S. of Sirius XM stock, or about 35% of the company.
Over the past year, Buffett has increased his investment in Sirius XM by 20 million shares or $459 million U.S. as the dividend yield has risen. His most recent purchase occurred in February 2025.
Buffett now earns $129.36 million U.S. per year in dividend payments from his Sirius XM holding. Those dividends could also benefit other income-focused investors.
