Do you realize that entertainment stocks have grossly underperformed the S&P 500 over the last six months? The PowerShares Dynamic Leisure & Entertainment ETF (PEJ) is down 5% for the last 180 days versus the S&P which is up about 7.5%. From a contrarian standpoint, maybe it is time to look at the entertainment industry.
One way to reduce risk when investing in this industry is to choose stocks that pay dividends, as this helps to reduce volatility and returns investors' capital faster. The list of high yield entertainment stocks at WallStreetNewsNetwork.com has spotlighted about a dozen companies with yields ranging from 1.7% to in excess of 5%.
As an example, Regal Entertainment Group (RGC) pays investors a yield of 4.3%. This Knoxville, Tennessee company operates multi-screen theaters in 42 states. The stock trades at 23.9 time trailing earnings and 16.0 times forward earnings. Quarterly earnings were down 6.4% versus the same quarter a year ago, on an 8.5% drop in revenues, primarily due to a poor summer for ticket sales.
Another entertaining high yield stock is Shaw Communications Inc. (SJR), the cable TV company, which is also involved in telecom and programming content services. The stock has a trailing price to earnings ratio of 15.8, and a forward PE of 13.6. The yield is a very favorable 4.1%. Earnings for the latest reported quarter were down 8.4% on a 1.2% rise in revenues.
Other high yielders include Cinemark Holdings (CNK) at a 3.0% yield and Corus Entertainment Inc. (CJREF) at 4.5%. To see a complete list of these high yield entertainment stocks, go to WallStreetNewsNetwork.com. Hopefully your portfolio will be profitable in addition to being entertaining.
Disclosure: Author didn't own any of the above at the time the article was written.