Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Sonoco Products Company (SON), Regal Entertainment Group (RGC): 3 Consumer Cylical Companies With Juicy Dividend Yields

Page 1 of 2

In a previous article, I pointed out three stocks in the consumer-cyclical sector: Darden Restaurants, Inc. (NYSE:DRI)Hasbro, Inc. (NASDAQ:HAS) and Gannett Co., Inc. (NYSE:GCI). Those three stocks satisfy several important but simple investment characteristics for long-term income investors: 1.) uninterrupted dividends for the past 10 years; 2.) dividend yield is higher than 3%; 3.) EBITDA multiple is less than 10.

In this article, three more stocks with similar characteristics will be discussed. They are Sonoco Products Company (NYSE:SON), Regal Entertainment Group (NYSE:RGC) and Meredith Corporation (NYSE:MDP).

Sonoco Products Company (NYSE:SON)

Packaging business

Sonoco Products Company (NYSE:SON) has a long history dating back to 1899. It operates in four main business segments: consumer packaging, paper and industrial converted products, display and packaging and protective solutions. Some 61.6% of the company’s total 2012 profits, or $176.8 million, was generated from the consumer-packaging segment. The paper and industrial converted products segment ranked second with $141.3 million in operating income.

What I like about Sonoco Products Company (NYSE:SON) is its consistent growth in both the top and bottom lines. Revenue increased from $2.8 billion in 2003 to $4.8 billion in 2012, while net income rose from $139 million to $196 million in the same period.

Sonoco Products Company (NYSE:SON) is a consistent dividend-paying company. Since 2003, its dividend has grown from $0.84 per share to $1.19 per share. It is trading at around $34.80 per share, with a total market cap of $3.6 billion. The market values the company at around 8 times EV/EBITDA. At the current trading price, Sonoco offers shareholders a decent dividend yield at 3.5%.

For full-year 2013, Sonoco Products Company (NYSE:SON) expects to generate EPS in the range of $2.26 to $2.32, with free cash flow of around $150 million, higher than the previous estimate of only $130 million.

Theater circuit operation

Regal Entertainment Group (NYSE:RGC) is in the business of theater-exhibition operations, with around 6,880 screens in 540 theaters. In 2012, around $1.9 billion, or 68% of total revenue, was generated from admissions, while the concessions segment brought in around $748.4 million in sales.

Regal Entertainment Group (NYSE:RGC) has consistently raised both ticket prices and concessions. In the past five years, the average ticket price increased from $7.68 to $8.90, while the average concessions per patron rose from $3.09 to $3.46. However, the increase in price seems to be offset by the decreasing attendance, which recently fell from 245.2 million to only 216.4 million.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!