Investors see Comcast paying dividend in '08

By Yinka Adegoke

NEW YORK, Jan 17 (Reuters) - Comcast Corp (CMCSA.O: Quote, Profile, Research, Stock Buzz), the largest U.S. cable company, may have to initiate a stock dividend this year to boost its beleaguered share price, reversing a long-standing company policy.

Comcast has lost about 40 percent of its market value over the past 12 months as investors dumped the stock when it became clear that the cable service provider would be hurt by the U.S. housing slump and economic downturn, amid stiffer competition from telephone and satellite company rivals.

Long-term shareholder Gamco Investors (GBL.N: Quote, Profile, Research, Stock Buzz) says that by offering a dividend, Comcast could attract a wider range of institutional investors who only buy stocks that guarantee dividends.

"I wouldn't be surprised if Comcast issued at least a nominal dividend this year," said Chris Marangi, a portfolio manager at Gamco, which holds 1.8 million Comcast shares.

Investors say they have been watching for any sign from Comcast executives, even their body language, when the issue of dividends comes up at conferences, and they believe the company is seriously considering one.

When asked at an investor conference why dividends are not part of Comcast's "shareholder dialogue," Chief Financial Officer Michael Angelakis said, "I don't think dividends are not part of the dialogue. They've always been part of the dialogue."

A Comcast spokesman said Thursday the company would not add to Angelakis' comments.