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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Kip S who wrote (3801)	2/16/2010 3:35:44 PM
From: Chris Forte	Respond to of 34328

Then there is the market's take. Here's how I would interpret that with respect to NCMI. With the stock yielding just 4%, my interpretation is that the market is not expecting a dividend cut at this time. If it were, the price would come down, and the yield would likely be 8%, 10% or more. Kip, interesting. I never would have thought to look at it that way. So sometimes you can infer market sentiment about a company's prospects based on price, dividend, yield, payout. If those that closely follow NCMI felt it couldn't continue to earn enough to maintain the dividend they would vote with their feet (or wallets.) FWIW, NCMI appears to be a growth story with a decent dividend, in my VERY humble opinion. If you've ever seen those annoying commercials in a movie theatre mixed in with the trailers you can probably thank them for it.<g> There are also some very small niches that are booming. Monday, the Cinema Advertising Council reported that in-theater advertising grew 5.8 percent to over $571 million last year. It makes sense: the box office is up, people are spending more time in theaters. Plus, when you're waiting in a movie theater you're a captive audience, while traditional TV commercials are easily ignored or skipped. Plus, cinema ads can be tailored to zip code and demographic. This is still a step down from the industry's 21.5 percent average growth over the past six years. The industry leader, National CineMedia (NCMI) has seen its stock grow 30 percent since the beginning of the year, while the Dow is flat. seekingalpha.com