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.