Source: Pixabay
Entertainment and media companies bring joy to our lives. They produce engaging content that gives us opportunities to laugh, cry, shout, scream and act out every emotion in between. They get us to invest our time and attention into TV shows, movies, games and more. For that, we can all be eternally grateful. However, did you know that entertainment and media companies offer a different type of investment opportunity? Aside from the pull of empathy and any other emotions you invest in a TV show, movie or game, it’s possible to put money into these companies as well.
Most people think of tech giants like Microsoft or online retailers such as Amazon when someone mentions the word “investing”. The truth is that these opportunities are also available in the media sector. From longstanding TV companies such as ITV to an agency like M&C Saatchi, you can buy shares in a variety of companies that shape the media and entertainment industry. In fact, it’s not only the UK where companies in this sector are listed. Cross over to the US and you’ll find even more media and entertainment companies you can buy shares in.
Investments can realise regular returns
If you’ve ever wanted to invest something more than time and emotion into this industry, you now know that you can. Of course, the next logical question is: what media and entertainment companies can I invest in? There are hundreds, but you might want to consider those that pay dividends. A company that pays dividends gives a portion of its earnings to shareholders, and this is a viable alternative for those looking for a regular income from their investment.
It’s often the case that established businesses pay dividends as they have a strong financial base. However, any company that sells shares can offer them. The amount you receive will depend on the amount a company earns, the percentage of its earnings it pays to shareholders, and the number of shares you hold. Payments are made at set points throughout the year, which means you could get some sort of additional income with the right stocks.
Source: Pixabay
Dividends aren’t always guaranteed, nor are they guaranteed to be lucrative. However, the following media and entertainment stocks offer dividends to their investors:
ITV
This British television company didn’t pay a dividend in 2020 but, before that, it typically made two payments per year. The 2019 dividend per share was £0.08, which equated to a yield (dividend payments divided by market capitalisation) of 5.37%.
One Media
This company is a digital rights acquirer, publisher and producer. In simple terms, it buys and distributes TV and music content. It doesn’t pay an annual dividend regularly, but it did make payments in 2016 and 2020. In 2020, the dividend per share was £0.055.
AMC Entertainment Holdings
If you want to invest in US stocks, AMC Entertainment offers dividends. This company has a stake in more than 1,000 cinemas across the US and Europe. Its average annual dividend yield, as of 2022, is 5.65%.
Investing in stocks and shares is not a certain business. You can make money, but at the same time, you could also lose it. That’s why it’s important not to rush into anything. Take your time, do some research and, if the omens look positive, start slowly.
The point here is that entertainment companies aren’t just good for entertainment. Yes, they bring us all manner of enjoyable content and, yes, we invest time and emotion into their products. However, they can also offer financial opportunities. By investing in the right entertainment and media stocks, you could receive dividends and, potentially, realise a positive return on your investments.