Market Cap: $760 million
YTD share performance: +16%
Current Yield: 4.4%
Belo Corp. (NYSE:BLC) is one of the few remaining TV broadcasters out there, a pure-television station operator that owns 20 television stations across various different networks including ABC, NBC, FOX and the CW. So rather than being tied to a single network’s programming, an investment in Belo is a play on broadcast television in general.
While there certainly is a threat from the rise of streaming video and other high-tech options, the bottom line is that TV is going to stick around for the near future. And as radio has proven, there’s something to be said for terrestrial broadcast outlets with a local flavor even if there is easy access to worldwide media via an Internet connection.
Revenues are very stable, and in an election year there could be a nice uptick in ad sales thanks to a glut of campaign spending by both parties. If you’re looking to just hide out in a low-risk stock and get a nice dividend, Belo is a cheap option for investors that is relatively stable.
The fact the payout was just hiked from 5 cents quarterly to 8 cents quarterly is a good sign. And the fact that the dividend payout ratio remains a paltry 18% of earnings is an even better sign going forward that the dividends are sustainable and could even increase down the road. Throw in a forward P/E ratio of about 9.5, and this is a decent-looking play.