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NYT & GCI: Should Dividend Investors Check Out Newspaper Stocks?
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This week, The New York Times Company (NYT - Free Report) impressed investors with its latest earnings report. The company posted revenue growth of 4%, comfortably topping estimates on the back of strong digital subscription figures. The newspaper giant added 265,000 digital-only members in the latest quarter, its biggest increase since right after the 2016 U.S. election.
NYT’s performance helped the company record earnings of 32 cents per share, beating the Zacks Consensus by four cents. It was the 10th consecutive quarter that NYT surpassed earnings estimates. Management also announced that it would be raising its quarterly dividend by a penny to five cents per share.
Shares of NYT skyrocketed to a 13-year high in the wake of the report, as the results quickly reminded that it is, in fact, possible to succeed and grow in today’s evolving media landscape. And for those worried about whether they missed the boat on NYT, there might even be another interesting newspaper stock to check out right now.
NYT rival Gannett (GCI - Free Report) should be reporting its latest quarterly earnings within the next few weeks. This publisher owns USA Today and more than 100 local media brands, making it the largest newspaper company by way of circulation in the United States.
As Ryan explores in today’s video, earnings estimates for Gannett’s to-be-reported quarter have moved slightly higher over the past 60 days, which is typically a good sign as it approaches its report date. Gannett is still struggling to grow earnings and revenue, but it does hold another strong characteristic that might attract investors.
Indeed, GCI appears to be a decent dividend stock, as the company pays a $0.16 per share quarterly distribution that yields 5.8% on an annualized basis right now. GCI has sustained this 16 cent payment for several years, and although its 54% payout ratio is a bit high, the company is likely aiming to maintain or grow the dividend.
Gannett has a different model than NYT—especially with digital media—but it’s similar to the Times in that it is a traditional media company looking to move further into the next era. Whether it can pull that off in the long-term is uncertain, yet the stock looks like a decent dividend option ahead of earnings.
Make sure to check out today’s video for more information on NYT and GCI!
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
NYT & GCI: Should Dividend Investors Check Out Newspaper Stocks?
This week, The New York Times Company (NYT - Free Report) impressed investors with its latest earnings report. The company posted revenue growth of 4%, comfortably topping estimates on the back of strong digital subscription figures. The newspaper giant added 265,000 digital-only members in the latest quarter, its biggest increase since right after the 2016 U.S. election.
NYT’s performance helped the company record earnings of 32 cents per share, beating the Zacks Consensus by four cents. It was the 10th consecutive quarter that NYT surpassed earnings estimates. Management also announced that it would be raising its quarterly dividend by a penny to five cents per share.
Shares of NYT skyrocketed to a 13-year high in the wake of the report, as the results quickly reminded that it is, in fact, possible to succeed and grow in today’s evolving media landscape. And for those worried about whether they missed the boat on NYT, there might even be another interesting newspaper stock to check out right now.
NYT rival Gannett (GCI - Free Report) should be reporting its latest quarterly earnings within the next few weeks. This publisher owns USA Today and more than 100 local media brands, making it the largest newspaper company by way of circulation in the United States.
As Ryan explores in today’s video, earnings estimates for Gannett’s to-be-reported quarter have moved slightly higher over the past 60 days, which is typically a good sign as it approaches its report date. Gannett is still struggling to grow earnings and revenue, but it does hold another strong characteristic that might attract investors.
Indeed, GCI appears to be a decent dividend stock, as the company pays a $0.16 per share quarterly distribution that yields 5.8% on an annualized basis right now. GCI has sustained this 16 cent payment for several years, and although its 54% payout ratio is a bit high, the company is likely aiming to maintain or grow the dividend.
Gannett has a different model than NYT—especially with digital media—but it’s similar to the Times in that it is a traditional media company looking to move further into the next era. Whether it can pull that off in the long-term is uncertain, yet the stock looks like a decent dividend option ahead of earnings.
Make sure to check out today’s video for more information on NYT and GCI!
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>