A couple of stcoks
In a far different industry, and on a more
speculative basis, I am intrigued by World
Wrestling Entertainment Inc. The company, based in
Stamford, Connecticut, promotes live and televised
wrestling matches. Or shall we call them exhibitions?
Stage Fight
In fact, these events are meticulously
choreographed pieces of sweaty theater with
pre-ordained endings. And many people consider them
immensely entertaining. The audience members --not
all of whom are 13-year-old boys like my son --
seem fascinated by the personae of the various
wrestlers, as well as the spectacle.
With a payout ratio of 179 percent, the dividend
will likely be cut soon. However, the yield right
now is more than 10 percent.
Penn Virginia Resource Partners LP is a coal miner
and natural-gas processor with headquarters in
Radnor, Pennsylvania. It has increased its
quarterly dividend from 35 cents a quarter in early
2006 to 48 cents a quarter now.
The dividend may be in jeopardy, based on a recent
payout ratio of 86 percent. I believe an improving
economy will bail out the company. As earnings
bounce back from recent depressed levels, I think
the company will be spared the shame of a dividend cut.
The stock sells for 12 times earnings and the yield
is a fat 9.8 percent.
Posted 15:39
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