This Dirt Cheap Stock Reports Earnings July 30. Is It Finally Time to Buy Sirius XM?

Sirius XM (NASDAQ: SIRI) has interested and frustrated investors in recent years. It holds a monopoly on satellite radio in the U.S., and the stock's dividend yield is far above S&P 500 averages.

Unfortunately, despite Berkshire Hathaway holding over 37% of its shares, the stock's value has slid over the last five years, and competition from internet-based streaming services has limited subscriber growth.

Still, one might wonder whether it is time to buy Sirius XM stock amid the possibility of further recovery when it reports second-quarter earnings on July 30.

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This is a difficult question, as reactions to earnings reports are difficult to predict before the fact. Investors will probably like the fact that it rallied nearly 50% in the first half of 2026.

However, Sirius XM has long been a slow-growth business, making it less likely the report will spark more buying in the stock. In the first quarter of 2026, revenue grew by 1% year over year after pulling back by 2% during 2025.

Nonetheless, net income surged 20% in Q1, after it turned profitable in 2025. Looking forward, analysts forecast flat annual revenue growth for Q2 along with a 23% profit increase over the same period. Amid that improvement, investors can buy the stock for 12 times trailing earnings.

Also, investors earn $1.08 per share annually in cash payouts while they wait for a stock recovery. That amounts to a dividend yield of 3.6%, far above the S&P 500's 1.1% average yield.

Such conditions indicate that investors should buy Sirius XM stock before July 30, but only if they are buying it for income.

Indeed, Sirius XM has a low earnings multiple and a generous dividend yield. Unfortunately, the flat revenue growth and low P/E ratio make it unlikely the quarterly report will point to any further growth catalysts.

Still, Sirius XM is a Berkshire Hathaway-owned stock selling at a low P/E ratio and paying a huge dividend. That makes it likely the communication stock is eventually due to move higher.

Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.