Hello everybody how are you? Today I am writing about a new purchase I made on June 27, 2016. Being a dividend investor I am in it for the long run and on the day of the purchase the stock market was getting hammered by the Brexit vote. Instead of panicking and selling I chose to see if any stocks were on sale. The stock I purchased was Corus Entertainment.
Corus Entertainment is a leading media and content company that creates and delivers high quality brands and content across platforms for audiences around the world.
The company’s portfolio of television services encompasses 45 speciality channels and 15 conventional television stations. Corus’ collection of premium brands include Global Television, W Network, OWN: Oprah Winfrey Network, HGTV Canada, Food Network, Disney Channel Canada, YTV and Nickelodeon Canada.
Corus owns 39 radio stations that represent the most listened to stations in Canada, located in 8 out of the 10 top markets.
Shaw Media Acquisition
On April 1st, 2016 Corus completed the acquisition of Shaw Media assets for the price of $2.65 billion. Shaw Media’s assets consisted of 19 speciality channels including the Food Network Canada, HGTV Canada, Slice, Lifetime Canada, History Channel, National Geographic Canada and BBC Canada as well as Global’s conventional stations in Vancouver, Okanagon, Edmonton, Calgary, Lethbridge, Saskatoon, Regina, Winnipeg, Toronto, Montreal, Halifax and Saint John. The acquisition more than doubles Corus’ size creating a portfolio of brands that encompass 45 speciality television services, 15 conventional television channels; 39 radio stations.
Corus currently pays a monthly dividend of $0.0950 and yields 9%. I know that is a very high dividend and made me think twice about this stock. However I believe that with the purchase of Shaw’s Media assets the company’s revenue and earnings will grow quite a bit which will propel the stock price higher.
The dividend has increased for 5 straight years.