S&P/ASX All Ordinaries Index (ASX: XAO) stock Sky Network Television Ltd (ASX: SKT) counts among the higher-yielding companies listed on the ASX All Ords.
And according to the analysts at Macquarie Group Ltd (ASX: MQG), both Sky's dividends and its share price look well-placed for significant growth.
Shares in the dual-listed, New Zealand-based satellite TV provider closed up 3.64% on Wednesday, ending the day at $2.85 apiece. That sees the Sky share price up an impressive 20% so far in 2025.
As for that passive income, the ASX All Ords stock delivered a total of 18.7 Aussie cents a share in unfranked dividends over the past year.
At Wednesday's closing price, that sees shares trading on a trailing dividend yield of 6.55%.
Now, here's why Macquarie expects Sky to outperform in the year ahead.
Should I buy the ASX All Ords stock today?
As you may be aware, on Tuesday, Sky announced that it had agreed to acquire 100% of the shares in Discovery NZ Limited for NZ$1 on a cash-free, debt-free basis.
The ASX All Ords stock expects the sale to be completed on 1 August.
Sky said the acquisition should deliver revenue diversification and an uplift of around $95 million on an annualised basis.
The company also forecasts "material cost synergies" primarily across its content and broadcasting infrastructure.
Sky said it expects to achieve incremental, underlying free cash flow from FY 2026 and sustainable earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of at least $10 million from FY 2028.
"It positions us to scale faster, accelerates our growth, and further diversifies our revenue streams, particularly in advertising and digital," Sky CEO Sophie Moloney said of the acquisition.
"We are acquiring a business with complementary operations that is a strong strategic fit for Sky, in an accretive way for our shareholders," Moloney added.
Why Macquarie is bullish on Sky shares
Following on the Discovery NZ acquisition announcement, the analysts at Macquarie reiterated their outperform rating for the ASX All Ords stock.
"Despite being inherently wary about acquisitions within the NZ media space (essential due to scale), SKT's acquisition of Discovery NZ makes good strategic and financial sense to us", the broker said.
The broker added:
While Discovery NZ had a limited future as a stand-alone vehicle, its assets, brands and delivery platform are highly complementary to SKT's existing business, provide expanded audience reach and open up considerable advertising (especially digital) revenue opportunities.
Macquarie also highlighted that the structure of the transactions ensures that the acquisition will be free cash flow positive in year one.
As for the passive income on offer from the ASX All Ords stock, Macquarie said:
SKT noted that the 30cps FY26 dividend target was unaffected by the transaction, and the potential for a further (accelerated) increase in EBITDA from FY28 provided support for higher dividend forecasts in the medium term.
Connecting the dots, Macquarie concluded:
SKT has invested in locking in core Entertainment/Sports content and delivery technology. Stabilisation of its core subscriber base while continuing to grow streaming subscribers, would underpin operating leverage, boosting future dividends.
Macquarie has a 12-month target price on Sky shares of NZ$3.56. That represents a potential upside of just over 14% from Wednesday's closing price of NZ$3.12 a share.
Adding in the forecast dividend growth, and this ASX All Ords stock is likely to remain high on the radar for passive income investors.
