If you like the income stability of dividend-paying stocks, here are two you might want to look at, including one that’s an industry leader in turning investor dollars into company profit. Let’s take a closer look at each one and what it offers.
Cineplex Inc. (TSX:CGX) is Canada’s largest movie theatre chain, operating 164 theatres with 75 million guests annually. It opened in 1979 and expanded significantly when it bought the Famous Players movie chain in 2005.
What is there to like about Cineplex? For starters, there’s its dividend yield. It currently pays a monthly dividend of $0.14 for an annual dividend of $1.68 per share. That gives it a nice dividend yield of 3.36%. Cineplex has offered a dividend yield of at least 3% over the last five years.
Cineplex’s net income also grew 6.50% year over year last quarter. This may not seem high, but it’s among the best growth rates of any company in its industry. Similarly, its net profit rate is 5.32%. Again, this number may not look fantastic, but Cineplex is one of the best companies in its industry at turning investor money into company profit.
Corus Entertainment Inc. (TSX:CJR.B) is a media and content-creation company that was founded in 1999 with assets originally owned by Shaw Communications. Corus operates 39 radio stations and 60 television channels, including the Canadian versions of HGTV and Food Network. Corus also creates content sold to over 160 countries around the globe.
What is there to like about Corus? It has an even better dividend yield than Cineplex. It currently pays $0.095 monthly for an annual dividend of $1.14 per share. Corus has a juicy dividend yield of 8.32%. Its annual dividend yield used to be in the 3-4% range, but has been in the 7-10% range over the past three years. If dividend-paying stocks are your thing, this is a dividend yield you don’t want to ignore.
Corus’s net income grew year over year last quarter from a loss of $0.10 to a gain of $0.33. It currently has a nice net profit rate of 11.70%. Compared to other, similar companies, Corus does a decent job of turning investor dollars into profit.
Bottom line
Cineplex offers a lower dividend yield than Corus, but it is an industry leader at turning a profit from investor money. Corus isn’t quite as good at generating profit when compared to others in its industry, but it offers a much higher dividend yield than Cineplex. Either could make a nice addition to a Foolish portfolio, depending on your preference of company profit vs. dividend yield.
