Darden Restaurants, Inc. (DRI), Hasbro, Inc. (HAS), Gannett Co., Inc. (GCI): Three Stocks for Long-Term Income Investors

Hasbro, Inc. (NASDAQ:HAS) might deliver a good improvement in its EPS due to its cost-savings initiative of around $100 million in annual savings by 2015. For the full year 2013, Hasbro expected to have around $45 – $48 million in gross savings and the net savings of $13-$15 million.

This media company is cheap

Gannett Co., Inc. (NYSE:GCI), a leader in international media and marketing solutions, is the owner of several iconic brands including USA TODAY and CareerBuilder. It operates in three main business segments: publishing, digital and broadcasting. Most of its revenue, $3.73 billion, or 70% of the total revenue, was generated from the publishing segment while digital and broadcasting contributed $719 million and $906 million, respectively, in operating income. What I like about Gannett Co., Inc. (NYSE:GCI) is its broadcasting business, with the highest operating margin. The publishing segment delivered only a 9.9% margin, while the operating margin of the broadcasting segment was nearly 49%.

Looking forward, I think that Gannett Co., Inc. (NYSE:GCI) could be a good activist target with the separation of the highly profitable broadcasting segment from the other two business segments.

Gannett Co., Inc. (NYSE:GCI) has paid shareholders uninterrupted but fluctuating dividends in the past 10 years. In 2012, the dividend stayed at $0.80 per share. At $20.80 per share, Gannett Co., Inc. (NYSE:GCI) is worth $4.76 billion on the market. The market values Gannett Co., Inc. (NYSE:GCI) at only around 5.55 times EV/EBITDA. The dividend yield is quite high, at 3.7%.

My Foolish take

All of those three companies above could fit well in investors’ long-term income portfolios. With juicy dividend yields, uninterrupted dividend-paying records, and low valuation, there will be a high probability that those three companies will deliver a nice total return for shareholders in the long run.

The article Three Stocks for Long-Term Income Investors originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Hasbro. The Motley Fool owns shares of Darden Restaurants and Hasbro. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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