In this article, we will be taking a look at 5 communication services stocks that pay dividends. To see our detailed analysis of communication services stocks, you can go directly to the 10 Communication Services Stocks that Pay Dividends.
5. Sinclair Broadcast Group, Inc. (NASDAQ: SBGI)
Number of Hedge Fund Holders: 19
Dividend Yield: 2.6%
Sinclair Broadcast Group, Inc. (NASDAQ: SBGI), a diversified television media company, ranks 5th on our list of communication services stocks that pay dividends. The company operates mainly in the US through its Broadcast and Local Sports segments and provides programming, operating, sales, and non-programming operating services to various television stations.
Deutsche Bank analyst Connor Murphy raised his price target on shares of Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) this July. The analyst’s new price target on the stock is $34 versus the previous $30 target. Murphy also kept a Hold rating on Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) as well.
In the second quarter of 2021, Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) had an EPS of -$4.41, beating estimates by $0.02. The company’s revenue was $1.61 billion, up 25.64% year over year and beating estimates by $6.21 million. Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) has also gained 45.39% in the past year.
By the end of the first quarter of 2021, 19 hedge funds out of the 866 tracked by Insider Monkey held stakes in Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) worth roughly $396 million. This is compared to 29 hedge funds in the previous quarter with a total stake value of approximately $453 million.
4. Deluxe Corporation (NYSE: DLX)
Number of Hedge Fund Holders: 12
Dividend Yield: 2.9%
Deluxe Corporation (NYSE: DLX), a tech-enabling solutions provider for small businesses and financial institutions, ranks 4th on our list of communication services stocks that pay dividends. The company operates mainly in the US, Australia, Canada, South America, and Europe through its Payments, Cloud Solutions, Promotional Solutions, and Checks segments.
This June, it was announced that Deluxe Corporation (NYSE: DLX) would be collaborating with Microsoft Corporation (NASDAQ: MSFT) over the former’s small business human resources and payroll solutions, to bring it under the latter’s Dynamics 365 Business Central umbrella. The collaboration would help finance and accounting solutions and their enhancement to the benefit of smaller businesses like Deluxe Corporation (NYSE: DLX).
In the second quarter of 2021, Deluxe Corporation (NYSE: DLX) had an EPS of $1.25, beating estimates by $0.37. The company’s revenue was $478.20 million, up 16.52% year over year and beating estimates by $56.6 million. Deluxe Corporation (NYSE: DLX) has gained 8.97% in the past 6 months and 45.49% year to date.
By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in Deluxe Corporation (NYSE: DLX) worth roughly $55.8 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $54 million.
3. Telephone and Data Systems, Inc. (NYSE: TDS)
Number of Hedge Fund Holders: 20
Dividend Yield: 3.5%
Telephone and Data Systems, Inc. (NYSE: TDS) is a communication services company offering telecommunications services in the US. The company works through its cellular, Wirelines, and Cable segments, and ranks 3rd on our list of communication services stocks that pay dividends.
This May, Citigroup analyst Michael Rollins raised his price target on shares of Telephone and Data Systems, Inc. (NYSE: TDS). The analyst’s new target on the stock is $29, with Rollins also reiterating a Buy rating on the stock at the same time.
In the second quarter of 2021, Telephone and Data Systems, Inc. (NYSE: TDS) had an EPS of $0.17, missing estimates by $0.04. The company’s revenue was $1.31 million, up 3.8% year over year and beating estimates by $4.64 million. Telephone and Data Systems, Inc. (NYSE: TDS) has gained 9.07% year to date.
By the end of the first quarter of 2021, 20 hedge funds out of the 866 tracked by Insider Monkey held stakes in Telephone and Data Systems, Inc. (NYSE: TDS) worth roughly $253 million. This is compared to 24 hedge funds in the previous quarter with a total stake value of approximately $210 million.
2. Cogent Communications Holdings, Inc. (NASDAQ: CCOI)
Number of Hedge Fund Holders: 18
Dividend Yield: 3.8%
Cogent Communications Holdings, Inc. (NASDAQ: CCOI) is a provider of high-speed internet access, private network, and data center colocation space services. The company operates mainly in North America, Europe, Asia, South America, Australia, and Africa, and ranks 2nd on our list of communication services stocks that pay dividends.
MoffettNathanson analyst Nick Del Deo this June raised his price target on shares of Cogent Communications Holdings, Inc. (NASDAQ: CCOI) from $70 to $84. The analyst also reiterating a Buy rating on the stock.
In the second quarter of 2021, Cogent Communications Holdings, Inc. (NASDAQ: CCOI) had an EPS of -$0.05, missing estimates by $0.27. The company’s revenue was $147.88 million, up 4.89% year over year and beating estimates by $1.09 million. Cogent Communications Holdings, Inc. (NASDAQ: CCOI) has gained 21.04% in the past 6 months and 21.87% year to date.
By the end of the first quarter of 2021, 18 hedge funds out of the 866 tracked by Insider Monkey held stakes in Cogent Communications Holdings, Inc. (NASDAQ: CCOI) worth roughly $319 million. This is compared to 23 hedge funds in the previous quarter with a total stake value of approximately $357 million.
1. National CineMedia, Inc. (NASDAQ: NCMI)
Number of Hedge Fund Holders: 11
Dividend Yield: 7.6%
National CineMedia, Inc. (NASDAQ: NCMI) operates through its subsidiary company, National CineMedia, LLC, to manage cinema advertising networks in North America. The company ranks 1st on our list of communication services stocks that pay dividends and engages in the sale of advertisement services to national, regional, and local businesses in Noovie, which is a cinema advertising pre-show broadcasted on movie screens.
Eric Wold, an analyst at B. Riley, this June raised the price target on shares of National CineMedia, Inc. (NASDAQ: NCMI). The analyst’s new target on the stock is $7, and he also reiterated a Buy rating on National CineMedia, Inc. (NASDAQ: NCMI) at the same time.
In the second quarter of 2021, National CineMedia, Inc. (NASDAQ: NCMI) had an EPS of -$0.28, missing estimates by $0.11. The company’s revenue was $14 million, up 250% year over year and beating the previous quarter’s revenue of $5.4 million.
By the end of the first quarter of 2021, 11 hedge funds out of the 866 tracked by Insider Monkey held stakes in National CineMedia, Inc. (NASDAQ: NCMI) worth roughly $14.6 million. This is compared to 11 hedge funds in the previous quarter with a total stake value of approximately $27.9 million.
See also 15 Best Undervalued Stocks to Buy Now and 10 Best Small Cap Stocks to Buy in 2021.
