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.
He would continue to hold this and he likes the management team, which owns a lot of the stock. Although the share price has not done much, they have paid a lot of special dividends. Broadcasting is a tough industry, but he thinks they will continue to do well.
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.
They're turning the corner. They didn't make a fresh low recently, so a good sign. Value investors will return to this after tax-loss selling.
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.
Significant equity offering. Will have lots of 5G spending in next 3-4 years. Dividend is safe. Will continue to increase dividend, though dividend growth is slowing as with all telecoms. Yield is 4.5%.
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.
The balance sheet is fine. They generate a lot of cash flow. There is headline risk because a large part of the their business is wireless and the other two have done a great job of catching up to them in wireless. It is probably a fine time to buy it, however.
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.
It is an extremely well managed company. It is a great space to be in as there is tremendous growth in the wireless space. They have to keep reinvesting. They have a strong balance sheet. The only risk is regulatory risk. You could buy on a pull back.
It’s enjoyed a superb run since 2015 and many analysts expect more growth to come, but their operations are limited to Quebec.
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.
It is a steady performer. 15% per year dividend growth. The stock has traded in a range until recently when it broke out to new highs. The group as a whole is behaving well. He likes the combination of assets and their opportunity for streaming in this area. (Analysts’ price target is $51.00)
Gray is a broadcaster based in Atlanta that operates in over 90 small- and mid-sized American markets. It continues to expand.
(A Top Pick May 31/18, Up 37%) $16.20 exit level. This company's too uneven, he wouldn't recommend it at this point.
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.
A relatively new add to his portfolio. He has a price target of $160. There will be some volatility and suggests scaling in here for 1/3 and adding again if it drops to $130 and again at $120. He compares it to Amazon's AWS, while Disney has its parks and with the runway led by…
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.