Stocks on the move: M, TRNC, COTY >>> READ MORE

7 High-Yield Dividend Stocks That Are Actually Safe

High yields often mean higher risk, but these stocks offer great payouts with a lot less worry than similar yielders

      View All  

7 Safe High-Yield Dividend Stocks: A.H. Belo (AHC)

7 Safe High-Yield Dividend Stocks: A.H. Belo (AHC)AHC Dividend Yield: 5.1%

Recommending a newspaper publisher like A.H. Belo Corporation (NYSE:AHC) as a stable dividend investment sounds ludicrous on its face. There might be no business in America less stable than print advertising at the moment. (Though mall-based apparel retailing is gaining ground.)

But hear me out.

AHC isn’t really a newspaper publisher. The company is down to just two papers: the Dallas Morning News and the Denton Record-Chronicle. Those aside, it has a growing digital advertising business, and a lot of real estate. That includes the legacy DMN headquarters in downtown Dallas.

Meanwhile, A.H. Belo has no debt and finished 2016 with $80 million in cash — enough to pay the current dividend for over a decade. The business is family-controlled — they will want their cash — and a long-speculated acquisition target. For instance, the New York Post reported last year that Gannett Co Inc (NYSE:GCI) was interested in a takeover.

There are risks — most notably an underfunded pension and obviously the continued decline in newspaper revenue and profits. But AHC remains cash-rich, cash flow-positive and incentivized to maintain the dividend (which it has done for four years now).

AHC might not seem like a stable dividend payer, but it likely will be.

Next Page

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC