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Big Merger Energy and a Bigger Dividend to Match
Noah Zelvis
November 27, 2025
In partnership with
Some income stories deliver yield but little excitement. This one offers both with a generous payout and a business gearing up for an even stronger future.
If you're seeking reliability with upside, this is worth a closer look.
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While the advertising industry loves a trend, Omnicom Group (NYSE: OMC) plays a different game.
It leans on decades-deep client relationships, a sprawling agency network, and a knack for navigating whatever cultural moment marketers are panicking about this week.
What you get as an investor is a company that doesn’t need to reinvent itself every quarter to stay relevant.
It simply executes, pulls the right strategic levers, and converts global marketing spend into cash flow with reassuring consistency.
In a market full of companies trying to shout the loudest, Omnicom whispers and is still heard everywhere.
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A global marketing engine built for all seasons
At its core, Omnicom is a global communications machine.
The company spans advertising, media buying, digital strategy, brand consulting, public relations, healthcare marketing, and a long list of niche specialties that help clients stay visible in an increasingly crowded world.
That breadth is more than a bragging point; it’s a built-in hedge. When traditional ad budgets wobble, digital picks up the slack.
When PR softens, experiential or commerce work steps in. Omnicom has enough levers to keep revenue moving even when individual segments drift.
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A strategic advantage
What really defines the business, though, is its client stickiness.
Omnicom doesn't win accounts with flashy pitches alone; it keeps them for years by acting as a strategic partner rather than a vendor.
That trust shows up in the numbers: recurring work, multi-agency relationships, and a disciplined cost structure that helps margins stay healthy even in slower cycles.
The company isn't chasing viral moments or betting the farm on one shiny new technology.
It's delivering global scale, creative firepower, and operational discipline, a combination that tends to age well, especially if you value predictability.
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Resilient results in a transition-filled quarter
Omnicom’s third quarter was a mixed but ultimately reassuring update for income investors.
Revenue came in at $4.0 billion, up 4% year over year with 2.6% organic growth, showing that demand remains resilient across core disciplines.
Media & Advertising was the star performer with 9.1% organic growth, while Precision Marketing and Execution & Support also contributed steady gains.
Weakness in Healthcare, PR, Experiential, and Retail Branding weighed on the mix, but not enough to derail the overall trajectory.
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Resilient results in a transition-filled quarter
Omnicom’s third quarter was a mixed but ultimately reassuring update for income investors.
Revenue came in at $4.0 billion, up 4% year over year with 2.6% organic growth, showing that demand remains resilient across core disciplines.
Media & Advertising was the star performer with 9.1% organic growth, while Precision Marketing and Execution & Support also contributed steady gains.
Weakness in Healthcare, PR, Experiential, and Retail Branding weighed on the mix, but not enough to derail the overall trajectory.
Solid progress, even with merger-related bumps
As expected, costs tied to the pending Interpublic acquisition made the headline margins look softer.
Operating income fell to $530 million with a 13.1% margin, but on an adjusted basis, the margin held firm at 16.1%.
Adjusted EPS rose to $2.24, up from $2.03 last year, underlining the underlying health of the business once one-off merger and repositioning charges are stripped out.
Management struck an optimistic tone, noting "significant new business wins" and highlighting the strategic advantages expected upon the Interpublic deal's close, including efficiency gains, scale benefits, and stronger free cash flow generation.
For investors focused on the long game, the momentum beneath the accounting noise remains solid.
Positive dividend news
Omnicom has given income investors another reason to smile this quarter, lifting the dividend to 80 cents per share.
That’s a healthy 14.29% increase and the kind of raise that signals confidence, not caution.
At today’s prices, the new payout puts the yield at roughly 4.48%, comfortably above the market average and right in the sweet spot for investors who want reliable income without drifting into riskier names.
What makes this bump especially encouraging is the backdrop: Omnicom is navigating a major acquisition, absorbing repositioning costs, and still generating the cash required to support a meaningful dividend hike.
It’s a reminder that this is a business with the balance sheet and free cash flow to keep rewarding long-term shareholders, even when the headlines look a little noisier than usual.
Action: With a recent dividend hike and a yield of 4.48%, this is a name to consider adding during periods of market softness. |
Plenty of runway, even if the mood shifts
The advertising and marketing landscape is never short on moving parts, but Omnicom heads into the next year with a clearer runway than many peers.
Global ad spend is expected to grow modestly, helped by healthier budgets in media, digital, and retail commerce.
These are all areas where Omnicom has long-standing strength.
The company's broad mix across creativity, data, media buying, and precision marketing gives it exposure to the segments most likely to capture that incremental growth.
Rowing through the rough waters
The most significant swing factor, of course, is the Interpublic acquisition. If integration goes smoothly, Omnicom emerges as a genuinely market-defining force, with scale advantages in data, tech, and global execution that few competitors can match.
Even modest synergies would support margins and reinforce the cash-generation story that income investors rely on.
Macroeconomic uncertainties remain, from consumer wobbliness to the usual geopolitical noise, but Omnicom has enough diversification and client stickiness to keep navigating through the choppier cycles.
It’s not a business that needs a booming economy to perform. It just needs stability, and right now the setup suggests more tailwinds than headwinds.
This is why OMC is a buy now
If you're looking for an income name that offers more than just a dependable quarterly check, Omnicom deserves a spot near the top of your list.
The business is navigating a major acquisition, absorbing short-term costs and still delivering organic growth, rising adjusted earnings, and a double-digit dividend increase.
That combination of resilience and generosity is rare in the marketing world.
With greater scale, deeper data capabilities, and a stronger global platform, Omnicom is positioning itself to capture a larger share of the industry's most profitable work.
For you, that means the potential for steadier margins, healthier cash flow, and a dividend that has room to keep climbing.
That’s all for today’s edition of the Dividend Brief.
Thanks for reading, and if you have any feedback or dividend stocks you want me to take a look at, just reply to this email!
—Noah Zelvis
DividendBrief.com