Six Flags Entertainment Corp (SIX), Cedar Fair, L.P. (FUN): Some Amusing Dividends

The Walt Disney Company (NYSE:DIS) does buy back a lot of its own shares, spending three times as much on this as the dividend in fiscal 2012. So the capacity for a higher dividend is there, but right now the company seems to prefer share buybacks. The Walt Disney Company (NYSE:DIS) could conceivable become a solid dividend stock in the future, but if you’re looking for income Six Flags is the better choice.

The bottom line

After a bankruptcy which put the company on a better footing Six Flags is now in a financial position to sustainably pay a lucrative dividend. Cedar Fair offers a higher dividend yield but seems a bit more precarious. Both company’s still have quite a bit of debt, and this along with the interest payments need to be watched. But as high-yield stocks, both Six Flags and Cedar Fair look like good choices.

The article Some Amusing Dividends originally appeared on Fool.com and is written by Timothy Green.

Timothy is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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