Media network’s dividend yield supplants high yielders
GMA 7, 19 billion peso Philippines-based media broadcasting company, reported its annual 2017 results last week.
The company recorded 8% drop in revenue and 30% drop in its profits.
GMA recorded steady sales growth minus its 1.5 billion revenue windfall from the 2016 elections. GMA 7 generated 81% of its business revenue from its namesake channel.
“Minus the extra-ordinary election-related load last year, airtime revenues from regular advertisers ended at about the same level as last year.”
GMA 7 Filings
In 2017, GMA ended with 500 million in debt, 2.3 billion in cash, and 9.4 billion in book value.
What is more attractive is that the company has been a consistent dividend payer since 2005. GMA currently has a very attractive dividend yield of 8.8%.
In the US broad exchange traded funds, iShares iBoxx $ High Yield Corp Bond (ticker HYG) yielded at 5.54%.
In the past three years, GMA allocated 8.6 billion in financing activities most of which or 6.7 billion were provided as dividends to shareholders.
COL FInancial has a buy recommendation on GMA 7 with 8.50/share fair value. This blog’s estimate indicated 6.4/share.
Disclosure: No shares in GMA