High-yield stocks were once a common part of the entertainment sector. While consumer spending trends can fluctuate, well-run movie theater chains, cruise lines, casinos and resort operators produced reliable revenue to support regular paydays. That was until the outbreak of the new coronavirus earlier this year. State lockdowns and the financial crisis pulled the rug from many of these businesses, forcing them to slash or entirely cancel their dividends. As the pandemic continues, where can investors turn for income in the entertainment space? Here are a few off-the-beaten-path ideas, all of which yield more than the typical S&P 500 stock right now.
Here are five entertainment stocks with at least a 2% dividend:
— Camping World Holdings (ticker: CWH)
— Dick’s Sporting Goods (DKS)
— Hasbro (HAS)
— LCI Industries (LCII)
— Polaris (PII)
Camping World Holdings (CWH)
With a share price that has more than doubled in 2020, Camping World is one of the few consumer stocks that has benefited from the coronavirus crisis in a big way. In addition to the standard outdoor fare that includes fishing, skiing and bicycling gear, CWH is one of the leading providers of recreational vehicles and a major source for RV parts and services. As a result, the movement of travelers out of hotels and into campgrounds in 2020 has been a boon for CWH’s bottom line. Outside the short-term pop this year, however, CWH offers a dividend that has more than doubled from 8 cents quarterly in 2016 to 17 cents a share as of its September distribution.
Current yield: 3.0%
Dick’s Sporting Goods (DKS)
A related play, Dick’s is the place to go for the gear to hit golf balls, go kayaking or simply jog around the neighborhood for some socially distant exercise. And with a robust e-commerce platform that allows for direct-to-consumer sales and contactless curbside pickup, DKS has weathered the disruptions of the pandemic better than many of its peers. It, too, has boosted its payouts in an otherwise rocky 2020 for retailers.
Current yield: 2.0%
One of the most iconic toymakers out there, Hasbro has a ton of licensed gear from Disney and Marvel to keep the kids occupied. It also has powerful board game brands including Monopoly, Clue, Jenga and Scrabble. When you’re stuck inside with kids (or parents), Hasbro’s fun offerings are a must-have to pass the time. And with a potentially blowout holiday shopping season as folks can’t splurge on travel or other goodies from past years, HAS is looking particularly strong as 2020 draws to a close.
Current yield: 3.1%
LCI Industries (LCII)
Another recreational vehicles merchant, LCI provides RVs as well as trailers for boats, four-wheelers and other outdoor gear. While it’s admittedly a niche business to specialize in ramp doors for oversized trailers, or roll-out awnings for RVs the size of a school bus, the good news is that the kind of customer coming to LCI tends to be loaded with discretionary income, meaning big price tags and big margins. The coronavirus pandemic hasn’t greatly affected upper-income Americans, meaning that as socially distant outdoor activities continue to gain in popularity, LCI is tailor-made for the current environment.
Current yield: 2.6%
Polaris is an iconic name in snowmobiles, ATVs, boats and more. With outdoor activities on the rise, PII’s business lines have prospered. So much so that the company increased its dividend by a penny this year to 62 cents, even as other recreation and entertainment stocks on Wall Street cut back. With winter sports around the corner, you can bet Polaris will power through the fourth quarter to build on this run.
Current yield: 2.6%
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5 Socially Distant Entertainment Stocks to Buy for Income originally appeared on usnews.com