by Fred Fuld III
The Oscars Are Coming, The Oscars Are Coming!
In just a couple of days, the 2022 Academy Awards will be taking place. In spite of the pandemic’s affect on the production of new content, the demand for entertainment has increased dramatically.
Companies involved in the entertainment industry can benefit from the clamor for videos, movies, TV shows, podcasts, music, and much more.
If you are looking for more conservative investments that pay a dividend, there are several entertainment-related stocks that fit the bill (no pun intended).
Comcast (CMCSA) is the huge communications and entertainment conglomerate with a market capitalization of $210 billion. The stock has a very favorable price to earning ratio of 15 and a forward P/E ratio of less than 12. Earnings per share growth this year is 33.5%, and the price to earnings growth ratio is an excellent 1.08 (remember: the lower the number the better). As for the dividend, the company pas a dollar a share per year which works out to a 2.14% yield.
Dolby Laboratories (DLB), the leader in audio technology with extensive ties to the entertainment industry, has a market cap of $7.6 billion. Although the stock currently trades at 31 times trailing earnings, the forward P/E is only 18. Earnings per share growth this year is 31.9%. Dolby also pays a dollar per year dividend, giving a 1.32% yield.
Paramount Global (PARA) is the large media and entertainment company, which has a market cap of $24.6 billion. The P/E ratio is an extremely favorable 5.8, and the forward P/E is 16. Earning per share for this year skyrocketed by 77.5%. The yield is a fairly high 2.53%.
Warner Music (WMG) is a global music entertainment company with a market cap of $19 billion. The trailing P/E is approaching nosebleed levels at 50, but fortunately, the forward P/E is a more reasonable 28.5. Plus earnings per share for this year is 162.7%. It pays a decent yield of 1.7%.
Maybe one of these companies can enhance your portfolio in addition to entertaining you.
Disclosure: Author didn’t own any of the above at the time the article was written.