What’s a broadcaster?
It used to be a TV network, plain and simple, but nowadays it’s a telco or media giant with tentacles reaching into the internet, cell phones, cable TV and, increasingly, streaming services.
In Canada, the three telcos enjoy an oligopoly by charging some of the highest data and phone rates in the world, which pay shareholders safe dividends.
An expected interest rate will be another tailwind.
Across the border, Disney has entered the streaming business with Disney+ that may or may not take away business from Netflix. Meanwhile, more traditional broadcasters, such as ATN here (SAT-X) or Grupo Televisa (TV-N) in America and Mexico, serve niche markets.
Here’s a list of the top broadcasting stocks:
An overlooked Canadian success story, Evertz, upgrades broadcasting equipment across North America. They are the leader in this space, and are expanding their presence.
Price target of $15, so not much room left. SaaS in the film industry, which has had a difficult time. He'd sell a third. If it goes up, that's OK. If it goes down, at least you sold a third.
It’s no secret that Corus has been struggling, then last month Shaw sold its $548 million stake. Some say this now is a buying opportunity, while others stay on the sidelines.
Allan Tong’s Discover Picks The stock is climbing out of a long slump and offers upside of 23%, based on a price target of $7.71 by six analysts. Corus has cut costs and the Shaw family owns the company, so there is stability in the upper office. Meanwhile, shareowners can collect the 3.83% dividend yield.…
Based in Markham, ATN broadcasts to the South Asian-Canadian community in languages including Hindi and Bengali. This demographic is large and wealthy, but ATN contends with piracy of South Asian content. That said, ATN is profitable and generates decent cash flow.
They have a fair bit of cash in the bank. Being a smaller company it suffers more from pirated content on the Internet. It was a really well run company. They had a lot of cash in the bank.
Telus has forecast its annual dividend growth rate of 7-10% for the next three years as its payout ratio declines. All this as the big three slash unlimited broadband rates in a battle to win customers.
(A Top Pick Apr 15/20, Up 19%) Saw there was a thirst for data. They were levered to agriculture, Telus International and health. A reopening trade for roam and travel. Risk-reward was good. Still thinks it works and likes it.
Rogers shot the opening salvo in the current data-plan war among Canadian telcos. A Toronto Raptors’ championship won’t hurt Rogers’ bottom line, but Rogers trails its peers in laying 5G fiber-optic to the home.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have finally gotten Shaw with a very large premium. A big deal at $26B. Regulators will surely be looking at this closely. Shares may come under pressure but they claim $1B in synergies and it should make a successful merger if the regulators allow…
A dominant player in this space that’s long enjoyed growth, but how much growth is left? At least the 5% dividend yield is safe, which is why many investors buy this stock.
This is a low hanging fruit that has low risk but has good upside potential with dividend. They will benefit from their network updates and 5G. There will be consolidation with Rogers and Shaw which will help their business. You will get a nice dividend. A great all weather stock. (Analysts’ price target is $60.09)
It’s enjoyed a superb run since 2015 and many analysts expect more growth to come, but their operations are limited to Quebec.
Pre-COVIC, he saw that tech was going to pop, and now the puck is heading to boring value names, like Quebecor. Has an 11% growth rate and trades at 12.6x 2021. Its a very cheap telco and have a lot of cash to return to shareholders and raise the dividend if they wish. Their wireless…
The U.S. Justice Department originally challenged AT&T’s takeover 12 months ago, but to the surprise of some eventually approved the deal. Now, the entertainment giant is even bigger as WarnerMedia. The company operates in film, TV, cable and publishing, including HBO and the Turner Broadcasting System.
(A Top Pick Jan 30/18, Up 5%) He bought this back believing the AT&T merger would go through--and it did. It worked out for him.
The world’s largest teleco, Comcast penetrates nearly half of all Amerian households. All eyes are on Comcast’s $39 billion takeover of U.K. broadcaster, Sky.
Gray is a broadcaster based in Atlanta that operates in over 90 small- and mid-sized American markets. It continues to expand.
Stockchase Research Editor: Michael O'Reilly This Atlanta based specialty channel TV station provider, operates in 94 markets, looking to grow to over 100. It trades at 5x earnings and below book value. EPS growth this year was over 190% and is projected to grow by another 125% this year. It pays a decent dividend, backed…
Based in Colorado, this direct-broadcast satellite player owns Dish Network. It doesn’t pay a dividend, but the stock just came off its 52-week high.
One of the biggest announcements this spring was the long-awaited announcement of Disney+, a new streaming service that’s expect to compete with Netflix. Or will it complement the streamer by reaching a younger audience? Regardless, this is definitely a stock to watch.
Hit by the pandemic, but Disney Plus did well through the crisis. Huge content library that they can stream. A reopening play on the parks, plus the new growth path of streaming. Positive future growth prospects. No dividend. (Analysts’ price target is $204.86)
This Ottawa software company helps service providers launch next-generation video offerings. It’s partnered with the likes of Netflix, Amazon and Google. Despite a good balance sheet, Espial’s operations have been quiet lately.
They haven't won many contracts lately. They had signed a deal with Rogers to make them look like Apple TV and more user-friendly, but lost that contract, then signed a few new contracts, but those revenues haven't come to fruition. He still holds it thought it's been going down. There's lot of cash on the…
A Mexican multimedia company, Grupo is the second-largest broadcaster in Hispanic America as well as the first of all the Spanish-speaking world. Much of its programming airs in the U.S.
(A Top Pick Jan 7/13. Up 4.33%.) When it became apparent the developing markets were behaving a little bit more poorly, he exited his position at about $30. Great company and ultimately it is in the right group but he prefers to focus on more US domestic companies.