Dividend Stock #5 National CineMedia (NCMI)
National CineMedia (NASDAQ: NCMI) is a massive in-theatre advertising network across North America, serving ads on screen and throughout cinema properties that reach almost 18,000 movie screens.
- Current Yield: 5% (80 cents a share annually)
- Dividend History: In June 2010, the company paid 18 cents a share for its quarterly dividend. This year, CineMedia will pay 20 cents a share. That’s an 11% dividend increase.
- Dividend Outlook: According to Bloomberg, National CineMedia has a three-year expected dividend growth rate of 10.3%.
- Recent Performance: The biggest flaw in NCMI is its recent performance. The company recently swung to a quarterly loss in its latest earnings report, and shares are off almost 20% year-to-date in 2011.
- Strong Outlook for Shares: Though a bit risky due to its recent earnings and stock performance, NCMI may be a strong growth buy as advertisers return to the screen and movie-goers head back to the theater. Revenue increased 9% from 2009 to 2010, and is set to grow 9% again this year. As we enter the blockbuster summer movie season, NCMI may be a good buy before a rebound.