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).
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.
