Motley Fool investors have been looking closely at growth stocks these days. However, dividend stocks are also becoming more popular. Not only can you see the profits from the growth of your stock, but if you find the right dividend stock, you can see the big profits from the passive income from the dividend alone.
Today, analysts will talk about the top choices so far. Stocks have fallen to a quarter of what they used to be. However, the outlook for this dividend stock is bright. Let’s dig into it.
How the mighty one fell
In 2014, the dividend share traded at approximately $ 20 per share. But today, its stock price is fairly flat. At the time of writing, the company is trading at approximately $ 5.65 per share. But analysts say the telco has a solid future.
The company Chorus entertainment (TSX: CJR.B). If you have been a long-term investor in this stock over the past few years, you are probably not a fan. But short-term investors are rewarded. Because the stock price fell due to the market crash, Short-term investor I’ve seen a 200% return! Still, this dividend stock is still cheap and has a price-earnings ratio (P / E) of 6.45. What do you get?
Investors have been burned before
As I said, long-term investors know why this dividend stock remains so low. Performance has declined over the last few years. The company focused on television revenue and accounted for 93% of the 2020 financial breakdown. The rest was on the radio.Over time, the company received most of its advertising revenue, followed by subscription..
So what’s the difference today? Growth Opportunities — Specifically through streaming options. According to the company’s revenue report on June 29, revenue was $ 403 million, up 15% year-on-year. The company has more than 600,000 subscribers through multiple streaming services, up from 500,000 in April to 100,000 in three months.
CEO Doug Murphy wants to throttle the revenue of this streaming service. He said STACKTV viewers are streaming about 10 million episodes. Monthly.. By the end of 2021, more ads will be inserted to further increase revenue. In addition, new global TV apps have been improved and added to more TV platforms.
Need to consider a chorus?
So this is the bullish and bearish view of the chorus. If you participate in it for dividend stocks, you can’t really go wrong. Even if you are a long-term holder, we are going to recommend it here at The Motley Fool. The company offers a dividend yield of 4.2% at the time of writing. However, it hasn’t changed much since 2018. However, as the balance sheet strengthens, dividend yields may rise along with stocks.
And the share is rising. As I said earlier, it has increased by 200% since the crash and 35% since the beginning of 2021. However, analysts believe the company needs to go further. The dividend stock is projected to achieve a potential rise of an average of 43% next year, and many believe it could double.
Currently, there is a risk of cord-cutting that many generations do not want to see ads. But for now, finding new sources of revenue and increasing advertising is a good bet to see a rise in market share in the short term. Analysts predict EBITDA in 2022 to be $ 541 million. This is an increase of 3.8% from 2021.
The chorus has recently reached an oversold territory and is currently floating above it with a Relative Strength Index of 36. However, its price-earnings ratio is 6.45. Steal it At today’s price. It may not be the best long-term stock for Motley Fool investors, but it’s certainly a great dividend stock to rise, at least for the next few years.
This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own treatises, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content. ..
Stupid contributor Amy Legate-Wolf There are no positions in any of the listed stocks. Motley Fool does not have a position in any of the listed stocks.
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