Tuesday, February 02, 2010
There's No Business Like Show Business: Top Yielding Entertainment Stocks
The news is out. James Cameron's Avatar, the highest grossing film ever, has been nominated for a Best Picture Oscar, with the Academy Awards being announced on Disney's (DIS) ABC network on March 7. The film was also nominated for eight other Oscars. I guess that should be expected for a movie that has grossed $594.5 million in the last month and a half.
But it is not just Avatar. Edge of Darkness, with Mel Gibson, brought in over $17 million just last weekend, with When in Rome grossing above $12 million. Sherlock Holmes (which I highly recommend, by the way), starring Robert Downey, Jr., Jude Law, and Rachel McAdams, was around $12.5 million for the weekend.
With all this money rolling in, the revenues must be going somewhere. WallStreetNewsNetwork.com has developed a free spreadsheet database of all the high yielding entertainment stocks that pay dividends over 3%. Several of these companies are beneficiaries of these movies.
Sherlock Holmes and Edge of Darkness are distributed by Warner Bros. Pictures, a subsidiary of Time Warner Inc. (TWX). Time Warner has a forward price-to-earnings ratio of 13 and a yield of 2.7%.
Regal Entertainment Group (RGC) operates a chain of theaters throughout the United States in mid-sized metropolitan markets and the suburbs. The company has a forward PE ratio of 18, and pays a very nice dividend of 4.9%.
Another motion picture chain that has theaters in North and South America is Cinemark Holdings Inc. (CNK), with a forward PE of 16, and an extremely generous yield of 5.1%.
There are actually 18 entertainment stocks with yields above 3%, five of which yield more than 7%, all of which can be found at wsnn.com. Some of the stocks on the list are senior notes, which trade like preferred stocks.
Author owns DIS and TWX.
Posted by Stockerblog at 11:10 AM