As many investors know, finding the right stock at the right price is not an easy task. It is even harder when you are searching for an inexpensive dividend-paying stock in a specific industry, like media and entertainment. To make this very specific search very easy, I have compiled a list of three dividend-paying media stocks that are trading at inexpensive forward valuations compared with the industry average, so let’s take a closer look to find out which would fit best in your portfolio.
1. Corus Entertainment Inc.
Corus Entertainment Inc. (TSX: CJR.B) is one of the largest integrated media and entertainment companies in Canada. At today’s levels, its stock trades at 9.5 times fiscal 2015’s estimated earnings per share of $1.75 and 9.2 times fiscal 2016’s estimated earnings per share of $1.82, both of which are inexpensive compared with the industry average price-to-earnings multiple of 17.8. In addition, the company pays a monthly dividend of $0.095 per share, or $1.14 per share annually, giving its stock a 6.8% yield.
2. Transcontinental Inc.
Transcontinental Inc. (TSX: TCL.A) is the largest printer in Canada, with operations in print and digital media, flexible packaging, and publishing. At current levels, its stock trades at 6.8 times fiscal 2015’s estimated earnings per share of $2.22 and 6.7 times fiscal 2016’s estimated earnings per share of $2.23, both of which are inexpensive compared with the industry average price-to-earnings multiple of 17.8. Additionally, the company pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, which gives its stock a 4.5% yield.
3. Torstar Corporation
Torstar Corporation (TSX: TS.B) is one of the largest media companies in Canada, publishing more than 120 newspapers, as well as books and digital media. At today’s levels, its stock trades at 11.9 times fiscal 2015’s estimated earnings per share of $0.48 and 12.7 times fiscal 2016’s estimated earnings per share of $0.45, both of which are inexpensive compared with the industry average price-to-earnings multiple of 17.8. In addition, the company pays a quarterly dividend of $0.13125 per share, or $0.525 per share annually, giving its stock a 9.2% yield.
Which of these media stocks should you buy?
Corus, Transcontinental, and Torstar represent three of the best long-term investment opportunities in the media industry today. Foolish investors should take a closer look and strongly consider buying one of them.
