Corus Entertainment and it’s 9%+ monthly dividend is definitely an eyesight for investors seeking an easy cash return through dividends. What’s more, Corus Entertainment is responsible for a wide variety of television channels – which much of my audience has been watching since they were kids.
YTV, particularly, was a TV channel I’d watch every day when I got home from elementary school.
It would bring me amazing shows like Pokemon, Fairly Odd Parents, Freaky Stories, Dexter’s Laboratory, Rupert, Goosebumps, Hey Arnold!, Yvon of the Yukon, Yu-Gi-Oh…
I caught wind of Corus Entertainment quite a few times while browsing the Canadian Dividend All-Star List, but never gave it much thought. Given the Canadian Radio-television and Telecommunications Commission (CRTC)’s ruling of forcing the television providers to offer a “$25 skinny basic cable” packages, the stock took a beating throughout the past year, dropping by around 30%.
Given the drop in share price of CJR.B, the dividend yield rose to above 9%. Corus Entertainment doesn’t even have a terribly large payout ratio, yet the dividend is very high.
After analyzing the safety of the dividend and deciding I was willing to take the risk, I decided to invest in a company that made a great impact on my childhood. I don’t feel as though children these days may have the same connection to the characters on screen as my generation did in the 90s, but I could be wrong. If you disagree, please let me know in the comments as I’m truly interested.
Corus Entertainment Joins the Fleet
On May 26th, I added 105 shares of Corus Entertainment (TSE: CJR.B) to The Dividend Beginner’s portfolio. I purchased the shares at $12.35, with a trading cost of $6.95 for a total cost basis of $1,303.70.
Corus Entertainment pays a monthly dividend of $0.095, which is $1.14 annualized. My initial yield on cost works out to 9.23%, my highest yielding company in the portfolio.
Corus Entertainment adds $119.70 to my annual dividend income, or $9.975 per month. CJR.B has increased their dividend 10 times out of the past 11 years, only keeping it constant throughout 2009 – 2010, just like Exchange Income Corporation and the Big Five Banks.
My 12-month forward dividend income has risen from $1,967.96 to $2,087.66, and my monthly dividend income is now $173.97, which will cover 65% of my necessities budget.
|Annual Dividend Income||$1,967.96||$119.70||$2,087.66|
|Monthly Dividend Income||$164.00||$9.975||$173.97|