Friday, December 27, 2013

There's No Business Like Show Business Stocks

Do you know what the number one activity is on Christmas Day (other than eating turkey)? Going to the movies. And this Christmas, there were many opening-day movies to choose from, including "Grudge Match" starring Robert De Niro and Sylvester Stallone, “The Hobbit”, “47 Ronin” with Keanu Reeves, “The Secret Life of Walter Mitty” with Ben Stiller, and of course the stock trader's favorite, Martin Scorsese’s “The Wolf of Wall Street.”

So how can the average investor participate in these blockbuster and other forms of entertainment? has a list of about a dozen entertainment related stocks, all of which pay dividends, with yields ranging from 1.9% to 5.9%.

One of these high yielders is Regal Entertainment Group (RGC), operator of the largest chain of theater circuits in the United States. This Knoxville, Tennessee based company trades at 17.6 times trailing earnings and 16.2 times forward earnings. Earnings for the latest quarter were up an incredible 212.9% year over year, on a great 17.3% rise in revenues. The company pays a very generous yield of 4.3%.

Another entertainment stock that pays a dividend is Cinemark Holdings, Inc. (CNK), which is the third largest theater chain. Trailing price to earnings ratio is 24.0, and the forward PE is 16.0. Quarterly earnings came through on this company also, rising 68.9% on a 19.8% revenue increase. The stock yields 3.0%.

Some of the cable stocks pay high yields, such as Comcast (CMCSA), yielding 1.5%, and Corus Entertainment Inc. (CJREF) paying 4.2%. To see other high yield entertainment stocks,go to

Disclosure: Author didn't own any of the above at the time the article was written.


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