World Wrestling Entertainment
Dividend Yield: 4.7%
Even if you don’t personally tune into World Wrestling Entertainment (WWE) matches, you’re likely familiar with the organization, its loyal followers, its stars — including John Cena and The Rock — and shows such as Raw and SmackDown.
Not many people are as familiar with its stock. However, while the $1 billion company only has volume of about 130,000 shares a day, it’s a powerful income player at a 4.7% yield that has outperformed the market with 30% gains.
WWE missed expectations in the most recent quarter, in part thanks to an 18% slide in pay-per-view purchases. Nonetheless, Roth Capital recently issued a “buy” call on WWE, noting that “TV contract renewals may come sooner than expected, its steady dividend pays investors to wait, and a cash flow turnaround in Films division under way.”
That cash flow turnaround — which builds on current annual operating cash flow of $69 million and cash reserves of $66 million — should help maintain WWE’s payout. And while WWE’s current payout ratio is north of 100%, the company’s annualized five-year earnings growth of 18% should also help keep things rolling.
Also, WWE has been rewarding investors for more than a decade.