Not to alarm you, but you’re about to miss an important event. Instead, I think at least some of the funds that are currently being redistributed to shareholders may be better off being reinvested in the company’s long-term growth. In short, investors are getting much more than just a movie company with an investment in Cineplex. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. While there are certainly investors out there who will focus on dividend yields, at the end of the day, it’s an investment’s expected total return that should be of the utmost importance to investors when considering the merits of a dividend-paying stock. © 2020 The Motley Fool Canada, ULC. This is your chance to get in early on what could prove to be very special investment advice. Theatre attendance across the Cineplex network was 17 million in 2018, down -3.2% from 2017’s theatre attendance. Since 2016 when the revenue peaked, SSSG has been negative and the company has been earning less.
In addition, Cineplex also has a buffer of approximately $40 million in cash and has untapped credit facilities on top of that. Strength in amusement and food service revenue lead the way. by Nelson Smith | May 25, 2018 | Dividend Growth Stocks |. I certainly don’t think the dividend is going anywhere but up over the long-term. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Naturally, investors will be more drawn to high-yielding dividends, but it’s important to understand that the market usually prices dividends that high for a reason. In the meantime, I’m paid over 5% annually to wait. In 2018, Cineplex generated an average of $10.73 in revenues per patron, up 1.8% from $10.53 in 2017. Dividends can be especially rewarding when you are holding a stock long term and the company continues to raise it over time. All rights reserved. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. At the same time, the dividend has been outpacing the earnings, which could add up to a cut in the dividend.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. It’s paramount for all investors to do their homework and understand the stability and safety of each dividend before you invest. Cineplex (TSE:CGX) Dividend Information Cineplex pays an annual dividend of C$1.05 per …
However, if the company can’t increase its sales, and consequently its earnings within the next few quarters, it will soon have burned through all of its cash reserves and have no choice but to cut the dividend. Doubt about the deal's fate is evident in the market, however, with Cineplex's shares down 67.7 per cent year-to-date through the end of trading Monday as they closed at $10.92 apiece. It’s impossible to tell what will happen in the oil markets, but investors should be aware that the price of oil could greatly impact their investment in dividend paying oil companies, as many of us have seen in the past.
The company is also building a number of new locations and is in the process of installing electric recliner chairs in certain theaters. This is your chance to get in early on what could prove to be very special investment advice.
Surge may therefore run into problems if global trade concerns continue to affect the price of oil. I understand I can unsubscribe from these updates at any time. Not to alarm you, but you’re about to miss an important event. Cineplex (TSX:CGX) stock lost 18.95% on the day of earnings. © 2020 The Motley Fool Canada, ULC.
In terms of the money Cineplex charged theatre attendees for its concessions (food and beverages) in 2018, the average patron spent $6.53 per visit — up 3.8% from the $6.29 they spend on average a year ago. We’re also staying home more than usual, watching cheap streaming options and much-anticipated new shows on Netflix. In order to sustain its dividend, Surge needs an average price of at least $55 for WTI. Currently with all the investments it’s been making, debt has been on the rise. I’m confident the stock rights itself and goes smartly higher over time. Because if it did, the company would look like it couldn’t afford its dividend. Don't miss out! Returns since inception, October 2013. Jason Phillips | February 26, 2019 | More on: CGX. In addition, Cineplex also has a buffer of approximately $40 million in cash and has untapped credit facilities on top of that.
Pizza Pizza has been reporting negative same-store sales growth (SSSG) in most quarters for the last few years. Both are investing heavily for the future. Hollywood is obsessed with sequels and superhero movies, and patrons are getting sick of it. If I happened to be sitting on the board of directors at Cineplex right now, I think I’d be doing my best to avoid pandering to crowd that wants to avoid a dividend cut at all costs. Fool contributor Jason Phillips has no position in any of the stocks mentioned. This was an increase of approximately 5% versus 2016’s numbers. You don’t often see a company up the dividend if the board of directors is at all concerned with maintaining the payout. They say the payout is unsustainable and if the current weakness continues it’s only a matter of time before it’s cut. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. Investors should make sure they are aware of all the financing needs of the company, in order to understand how safe the dividend is, especially if it’s a high yielder. Although Surge is a quality company, as it’s a commodity company, it ultimately doesn’t control the price of the goods it sells. Much of the spending has been to improve the theater experience, of course. The company has thus far managed itself well throughout the oil glut, but the one thing it can’t do is control the price of oil. Dividends are great for investors as income or as a nice bonus to any capital gains that are made. It has not been a good year for Cineplex Inc. (TSX:CGX), as shares have fallen more than 40% over the last twelve months. Not surprisingly, Cineplex doesn’t bother with a traditional payout ratio.
Instead, the company uses an adjusted free cash flow to determine its dividend payout ratio, which it currently pegs at 70%. I continue to like Cineplex here. Cineplex’s shares were yielding 6.99% annually heading into Tuesday’s trading. Granted those price increases have helped to keep the company afloat for the time being and have continued to support the firm’s regular $0.145 monthly dividend distribution. In 2018, Cineplex generated an average of $10.73 in revenues per patron, up 1.8% from $10.53 in 2017. Current as of October 5, 2020. Is there any hope left, or will the company heave for bankruptcy?
If cash ever became scarce, the company would just scale back on growth projects. It is important to note, however, that because of the structure of Pizza Pizza, and the stability of revenue in its revenue pool of over 750 restaurants, a dividend cut would be slight. 5 Stocks Under $49 (FREE REPORT). It is also spending to increase the number of The Rec Room and Topgolf locations, and is expanding its restaurant operations nationwide. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. Returns since inception, October 2013. The Motley Fool Canada » Energy Stocks » Warning: These 3 Stocks Are at Risk of a Dividend Cut, Daniel Da Costa | August 14, 2019 | More on: CGX PZA SGY. Don't miss out!
The company’s loyalty plan, Scene, is Canada’s largest such program, with nearly 9 million members. Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. Currently the company pays $0.8556 out in dividends and has trailing 12-month earnings of $0.84.
The three companies are Pizza Pizza Royalty Corp (TSX:PZA), Surge Energy Corp (TSX:SGY) and Cineplex Inc (TSX:CGX). Here’s why I’m content to hold the stock despite a 20% decline from my purchase price. You can see management’s point, since much of its capital spending is growth-based and will not be repeated. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. Cineplex specifically has a number of issues as well. Management upped the payout to $1.66 per share in 2018, a 4% increase versus last year. That’s not good, particularly when you consider that attendance at U.S.-based rival AMC Entertainment Holdings was up 8.2% globally through the first nine months of 2018, including 6.4% in its U.S. markets. However, at the same time, that $0.145 monthly payout (which works out to $1.74 annually) is starting to look more and more unsustainable in light of Cineplex’s full-year earnings for 2018 of $1.22 per share and free cash flow per share of $1.47. (UPDATED) TransAlta’s Preferred Shares offer an 8% Yield. That’s a decent amount of cash for a company with a market cap of $1.9 billion.
The Scene VISA card (a partnership with Bank of Nova Scotia) continues to be one of Canada’s most popular credit cards. In the last four years alone, long-term debt has increased by approximately 50%.
Then there’s the recent dividend raise. It may look like a weak comparison on the surface, but they have one important thing in common. On the surface, things might seem mildly okay, but a deeper dive into the numbers reveals a more discouraging picture. First and foremost, movie attendance has been markedly weaker lately, for a number of different reasons.
Please read the Privacy Statement and Terms of Service for more information. Simply click the link below to grab your free copy and discover all 5 of these stocks now. They’d look like fools, and rightfully so. Just Released! The Motley Fool Canada » Dividend Stocks » Does the Buck Stop With a Dividend Cut for Cineplex Inc (TSX:CGX) in 2019? Just Released! The company is constantly spending to improve its theaters and to expand into other areas of the entertainment market (like restaurants, arcades, and golf, to name a few). Key Data for Cineplex Inc. (CGX), including dividends, moving averages, valuation metrics, and more. Why Alberta (and Your Oil Stocks’) Fate is Linked to… Bernie Sanders? Full-year revenues for 2018 came in at $428 million, little changed from 2017’s revenues of $426 million.
5 Stocks Under $49 (FREE REPORT). I disagree. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. Live on Passive Income: 3 Top TSX Dividend Stocks to Buy in October 2020, Wherever the Market Goes, I’m Buying These Top TSX Stocks, Why Canopy Growth (TSX:WEED) Stock Fell Over 11% Last Month, Why Hexo (TSX:HEXO) Stock Fell 8.4% Last Month, 1 Safe High-Yield Dividend Stock to Buy for October. Management upped the payout to $1.66 per share in 2018, a 4% increase versus last year. Then there’s the recent dividend raise. Cineplex agreed to be acquired by Cineworld in mid-December for $34 per share, and the arrangement was overwhelmingly approved by the Canadian theatre giant's shareholders in early February. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share. Current as of October 5, 2020. Simply click the link below to grab your free copy and discover all 5 of these stocks now. Live on Passive Income: 3 Top TSX Dividend Stocks to Buy in October 2020, Wherever the Market Goes, I’m Buying These Top TSX Stocks, Why Canopy Growth (TSX:WEED) Stock Fell Over 11% Last Month, Why Hexo (TSX:HEXO) Stock Fell 8.4% Last Month, 1 Safe High-Yield Dividend Stock to Buy for October. What I find most disturbing about Cineplex’s latest earnings release was that attendance across the company’s chain of theatres continues to experience declines. Despite the stock being a dividend-growth darling for years, some investors are becoming nervous about Cineplex’s dividend.
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