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Alberto Abaterusso
Alberto Abaterusso
Articles (1661) 

Three Stocks With Superior Forward Dividend Yields

Salem Media Group tops the list

May 07, 2019 | About:

As of Monday, several stocks were offering to shareholders a forward dividend yield that more than doubled the S&P 500 Index's yield of 1.87%. As such, dividend investors may want to consider the following media companies.

The first company is Salem Media Group Inc. (NASDAQ:SALM), with a closing share price of $2.14 and a market capitalization of $55.91 million on Monday. The stock has a forward dividend yield of 12.26% versus an industry median of 2.48%.

Based in Camarillo, California, Salem Media Group has continuously paid dividends since 2012.

Its dividend per share was flat on average every year over the past five years, with its dividend yield moving into a high range of 2.5% to 13.6% over the same period.

Currently, the radio broadcasting company is paying a 65-cent cash quarterly dividend per common share.

The stock has a price-book ratio of 0.26 versus the industry median of 1.75 and a price-sales ratio of 0.2 compared to the industry median of 1.86. The share price decreased 39% over the 52 weeks through May 6. It is trading below the 200, 100 and 50-day simple moving average lines. The 52-week range is $1.85 to $6.25.

GuruFocus assigned a rating of 4 out of 10 for the financial strength and of 6 out of 10 for the profitability and growth of the company.

Wall Street recommends to buy shares of Salem Media Group and has established an average price target of $4.25 per share, reflecting 98.6% upside from the share price at close Monday.

The 14-day relative strength index of 44 suggests the stock is neither oversold nor overbought.

The second company is A.H. Belo Corp. (NYSE:AHC), with a closing share price of $3.77 and a market capitalization of approximately $81.11 million at market close on Monday. The forward dividend yield is 8.67% versus an industry median of 3.09%.

Based in Dallas, Texas, the local news and information publishing company has paid dividends in 2008, and continuously since 2010.

Its dividend per share was flat on average every year over the past five years, and the dividend yield has ranged between 2.5% and 8.5% over the same period.

Currently, A.H. Belo Corp. is paying an 8-cent cash quarterly dividend per common share. The next payment will take place on June 7 to shareholders of record May 17. The ex-dividend date is scheduled for May 16.

The stock has a price-to-owner-earnings ratio of 14.91 versus an industry median of 15.2, a price-book ratio of 1.23 compared to an industry median of 1.4 and a price-sales ratio of 0.38 versus an industry median of 1.07.

The share price declined 24% over the past year through May 6. The chart below also illustrates that the share price is below the 200, 100 and 50-day simple moving average lines. The 52-week range is $3.35 to $5.03.

GuruFocus assigned a financial strength rating of 7 out of 10 and a profitability and growth rating of 3 out of 10.

The 14-day relative strength index of 49 suggests the stock is neither oversold nor overbought.

The third company is Gannett Co. Inc. (NYSE:GCI), with a closing share price of $9.32 and a market capitalization of $1.07 billion at market close on Monday.

The stock has a forward dividend yield of 6.91% versus an industry median of 3.09%. Based in McLean, Virginia, Gannett Co. Inc. is in the publishing industry as a media and marketing solutions company.

Gannett was incorporated in 2014, and it has regularly paid dividends since September 2015.

The dividend per share was flat on average every year over the past three and a half years. The dividend yield fluctuated between 0.94% and 8.04% over the same period.

On June 24, Gannett will pay a 16-cent cash quarterly dividend per common share to shareholders of record June 10. The ex-dividend date is scheduled for June 7.

The stock has a price-earnings ratio of 466 versus the industry median of 18.28, a price-book ratio of 1.02 versus an industry median of 1.4, and a price-sales ratio of 0.38 versus an industry median of 1.07.

The share price is below the 200, 100 and 50-day simple moving average lines. The 52-week range is $8.37 to $11.99 per share.

GuruFocus assigned a rating of 5 out of 10 for both the financial strength.

Wall Street recommends to hold shares of Gannett Co. Inc., with an average price target of $11.67 per share, mirroring 25.5% upside from the share price at close Monday.

The 14-day relative strength index of 36 suggests the stock is not so far from oversold levels.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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