7 Safe High-Yield Dividend Stocks: Outfront Media (OUT)
OUT Dividend Yield: 5.5%
There’s one key risk facing Outfront Media Inc (NYSE:OUT). The company has a key contract with New York’s Metropolitan Transit Authority to supply advertising in subways, trains and buses. That contract drove about 15% of 2016 sales — and OUT is awaiting word as to whether it will be renewed.
Fears of a loss in New York have kept a lid on OUT stock since its 2014 spinoff from CBS Corporation (NYSE:CBS). But the pessimism seems a little overdone at this point.
Outfront Media is coming off a year where adjusted funds from operations (AFFO, an important metric for real estate investment trusts) grew 9% year-over-year. A win with Boston’s transit authority could offset some of the pressure from a loss in New York. And Outfront — for now — still has a decent chance of maintaining that concession.
Showing its confidence, Outfront Media raised its dividend coming out of Q4. An annualized payment of $1.44 supports a 5.4% yield at current prices.
OUT certainly is no growth stock — but it should be stable, and its REIT structure limits corporate income tax payments. There’s enough here to project a steady, safe stream of dividends for some time.