Regal Entertainment has paid uninterrupted dividends for the past 10 years. Its dividend payment fluctuated in the range of $0.60 per share to $1.20 per share in the recent 10-year period.
In 2012, it paid out around $0.84 per share in dividends. The company is trading at $17.90 per share, with a total market cap of nearly $2.8 billion. The market values the company at 9.2 times EV/EBITDA.
Investors might like Regal Entertainment Group (NYSE:RGC) because of its high dividend yield at 4.7%. Nevertheless, investors should be worried about its large payout ratio of 239%. It means that Regal Entertainment pays investors dividends that are larger than what it has earned.
However, Regal Entertainment Group (NYSE:RGC) has managed to raise its free cash flow from $143 million in 2008 to $263 million. Looking forward, Regal Entertainment would use the capital allocation strategy to maintain the cash-dividend payout, after maintaining the net debt of three-to-four times EBITDA and $125 million in annual capital expenditures.
Magazines and TV stations
Meredith Corporation (NYSE:MDP) is considered one of the leaders in the media and marketing industry, operating in two main business segments: national media and local media. In the national media segment, Meredith Corporation (NYSE:MDP) has around 30 websites, 20 applications and 20 brands, while the local-media segment has around 12 network-affiliated television stations in the U.S., including MyNetworkTV, FOX and CBS.
Meredith Corporation (NYSE:MDP) recently generated most of its operating profits, or $133 million, from the national media segment, whereas local media contributed nearly $88.3 million in operating income.
In the past 10 years, Meredith has consistently paid dividends to its shareholders. The dividend increased from $0.37 per share in 2003 to $1.40 per share in 2012. The company is trading at around $40.60 per share, with the total market cap of $1.8 billion. The market values the company at around 8.3 times EV/EBITDA. At the current trading price, Meredith’s dividend yield is quite juicy at 4%.
Meredith Corporation (NYSE:MDP) has been generating consistent positive free cash flow. In 2012, the free cash flow came in at $146 million. For full-year 2013, the company expects to increase its annual dividends to $1.58 per share.
My Foolish take
All of those three mentioned-above companies are providing investors nice dividend yields. Investors should be careful with Regal Entertainment Group (NYSE:RGC) dividend, as its dividend payout is two times higher than its earnings, while the payout ratios of Sonoco and Meredith are only 61% and 59%, respectively.
Sonoco Products Company (NYSE:SON) and Meredith Corporation (NYSE:MDP), with consistent dividend-payment histories, reasonable payout ratios and single-digit EV multiples, could fit well in investors’ income-oriented portfolios.
Anh HOANG has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article 3 Consumer Cylical Companies With Juicy Dividend Yields originally appeared on Fool.com.
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