​Dividend Speculators: Kohl’s and New Media Investment Group

MoneyShow |

Image via Mike Mozart/Flickr CC

We’re also adding two new stocks positions to our higher risk Dividend Speculators model portfolio, explains income investing specialist Harry Domash, editor of Dividend Detective.

One, a brick and mortar retailer that’s figuring out how to compete in today’s retail world. It’s paying 3.7% and analysts are forecasting 25% EPS growth this year. If that happens, shareholders could enjoy serious share price appreciation over the next 12-months.

Meanwhile, if there’s any business sector more troubled than brick & mortar retail it would have to be newspapers. You guessed it! We’re also adding a rapidly expanding publisher that’s paying 8.6% to our Dividend Speculators.

Kohl’s (KSS) Trade operates more than 1,100 retail stores in 49 states. As has been the case for many retailers, Kohl’s sales and profit margins slipped in recent years.



However, last year, Kohl’s initiated several new programs aimed at adapting to the changing retail environment. Changes included reconfiguring stores, adding more national brands, upgrading style selection, etc. Those efforts began to show results when Kohl’s announced its January 2018 quarter numbers.

Most notably, after years of reporting flat sales and falling earnings, this time EPS soared 30% vs. year-ago on a 9% gain in revenues.

Analysts, looking for 26% EPS growth, are expecting more of the same this year. Kohl’s recently raised its quarterly dividend by 11% to $0.61 per share (3.7% yield).

New Media Investment Group (NEWM) Trade owns and operates more than 90 daily newspapers, and 250 weekly newspapers in small and mid-sized U.S. markets. It also offers a variety of digital marketing services targeted to small businesses.

Although it’s adding fast growing digital marketing products, New Media is also spurring growth by acquiring additional newspapers and associated businesses. Dividend yield is 8.5% and it’s growing its payouts around 6% annually.

Harry Domash is editor of Dividend Detective.

Subscribe to Harry Domash's Dividend Detective here…

About MoneyShow.com: Founded in 1981, MoneyShow is a privately held financial media company headquartered in Sarasota, Florida. As a global network of investing and trading education, MoneyShow presents an extensive agenda of live and online events that attract over 75,000 investors, traders and financial advisors around the world.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
KSS Kohl's Corporation 60.61 -4.86 -7.42 21,477,854 Trade
NEWM New Media Investment Group Inc. 16.69 -0.50 -2.91 312,581 Trade

Comments

Emerging Growth

Lexaria Bioscience Corp

Lexaria Bioscience Corp is a food sciences company. It has two distinct consumer product brands: ViPova and Lexaria Energy. It uses patent pending technology to infuse hemp oil ingredients within…

Private Markets

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.