Regal Entertainment Group
Dividend Yield: 4.6%
Finally, we have a slightly more common form of viewing entertainment: the movies. Regal Entertainment Group (RGC) operates more than 6,600 screens in over 500 theaters across 37 states.
It also pays out a 21-cent quarterly dividend that currently yields 4.6% amid the stock’s 27% year-to-date run.
RGC’s dividend did take a hit during the recession, dropping from 30 cents, but the payouts didn’t die out, and the dividend is now 20% higher than it was in early 2009.
Plus, while chatter about the end of the box office has been going on for some time, Regal seems to be doing just fine. In the most recent quarter, RGC beat earnings and revenue expectations, with CEO Amy Miles calling the environment healthy and adding that she was optimistic about the current period.
There’s no sign that the end of the dividend is near either. In the first half of the year, Regal had $208 million in free cash flow, while it totaled more than $350 million last year. So while the company’s current 84-cent annual payout is nearly 75% next year’s expected earning, it’s less than 40% of that free cash flow.
So go ahead: Grab some popcorn, and enjoy the show — and your payouts.
As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.