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Amusement Park Stocks That Can Also Amuse The Investors

April 08, 2015 | About:

Gone are the days when investors were looking for stocks that were into serious lines of business. With the economy in booming stage and the travel industry looking brighter these days, amusement parks all over the globe are witnessing millions of visitors every day. Therefore the demand for stocks owning these parks is quite high. There are many theme parks in the market today, and it is indeed a tough challenge to pick one from them. The following article lists out some of the best amusement park stocks in the market today for investors to put their hard-earned money in.

Exciting businesses to fuel theme park operations

When we are talking about amusement parks, can Walt Disney (NYSE:DIS) be left far behind? One of the pioneers in this industry, Disney is the most successful name when it comes to theme parks. One of the biggest strengths of Disney is that it has other successful businesses to provide finances for the maintenance of its entertainment parks. Sports broadcasting and movie production are two of its other successful ventures. Disney gets more than enough money from these businesses to invest in entertainment parks and to pay out investors. If you are an investor who is interested in these theme parks, you are in for a bonus as Disney will open its biggest park during 2016 in Shanghai. This park, set on a different level altogether, will be one of the major reasons for the success of the company in the coming years. During 2014, revenues from Disney’s amusement parks were $15.1billion, an increase of 7% from 2013. This amount contributed to close to 31% of the company’s total revenue. Let us now look at the trend of Disney’s share prices over the last year:

Must buy stock for adventure enthusiasts

If your idea of an amusement park is all about thrill, adventure and oodles of bumpy rides, the stock that would best suit you is that of Cedar Fair (NYSE:FUN). The entire amusement park of Cedar Fair is replete with machines that offer you scary rides, and it is the place to be for people who are looking for ultimate adventure in their lives. While the average income per guest rose by a meager 3% in 2014 when compared to the income earned during 2013, the number of people who visited the amusement park at Cedar Fair went down by 1% last year. The business has been growing at a snail’s pace and has been falling short of expectations; however, there is one point that works strongly in favor of Cedar Fair – its dividend yield. Currently, the stock yields 5.2%, which is an impressive value for income investors. With a relatively new top management team at the helm of affairs, Cedar Fair is all set to grow at a quicker pace than before, in the coming years. The historical share price movement of the company for the last one year is as follows:

Conclusion

Amusement parks are gaining high popularity these days due to their fast pace of growth. They also pay out reasonable returns to investors; hence it is a good choice to put your money in. The only thing that you need to take note of is the brand name and reputation of these stocks. There are quite a few newbies in the market today who deal with theme parks and resorts. However, it is not advisable to invest in them, as you might have to take up a considerable amount of risk as well with them. To derive the full benefit of theme park stocks, trust in the famous names in the market – a couple of them are already mentioned above.

About the author:

Business Reports
We are a group of analysts exploring and analyzing different domains of business and writing reviews based on information available in public domain web portals. We do not hold any stock or investment position in any of the companies that we write for.

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