Corus Entertainment

I Bought Shares in my Childhood with Corus Entertainment

Purchases

Corus Entertainment and it’s 9%+ monthly dividend is definitely an eyesight for investors seeking an easy cash return through dividends. What’s more, Corus Entertainment is responsible for a wide variety of television channels – which much of my audience has been watching since they were kids.

YTV, particularly, was a TV channel I’d watch every day when I got home from elementary school.

It would bring me amazing shows like Pokemon, Fairly Odd Parents, Freaky Stories, Dexter’s Laboratory, Rupert, Goosebumps, Hey Arnold!, Yvon of the Yukon, Yu-Gi-Oh…

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Did you ever think you’d see Pokemon on The Dividend Beginner?

I caught wind of Corus Entertainment quite a few times while browsing the Canadian Dividend All-Star List, but never gave it much thought. Given the Canadian Radio-television and Telecommunications Commission (CRTC)’s ruling of forcing the television providers to offer a “$25 skinny basic cable” packages, the stock took a beating throughout the past year, dropping by around 30%.

Given the drop in share price of CJR.B, the dividend yield rose to above 9%. Corus Entertainment doesn’t even have a terribly large payout ratio, yet the dividend is very high.

After analyzing the safety of the dividend and deciding I was willing to take the risk, I decided to invest in a company that made a great impact on my childhood. I don’t feel as though children these days may have the same connection to the characters on screen as my generation did in the 90s, but I could be wrong. If you disagree, please let me know in the comments as I’m truly interested.

Corus Entertainment Joins the Fleet

On May 26th, I added 105 shares of Corus Entertainment (TSE: CJR.B) to The Dividend Beginner’s portfolio. I purchased the shares at $12.35, with a trading cost of $6.95 for a total cost basis of $1,303.70.

Corus Entertainment pays a monthly dividend of $0.095, which is $1.14 annualized. My initial yield on cost works out to 9.23%, my highest yielding company in the portfolio.

Corus Entertainment Payout Ratio

Corus Entertainment adds $119.70 to my annual dividend income, or $9.975 per month. CJR.B has increased their dividend 10 times out of the past 11 years, only keeping it constant throughout 2009 – 2010, just like Exchange Income Corporation and the Big Five Banks.

My 12-month forward dividend income has risen from $1,967.96 to $2,087.66, and my monthly dividend income is now $173.97, which will cover 65% of my necessities budget.

Before Net Increase After
Annual Dividend Income $1,967.96 $119.70 $2,087.66
Monthly Dividend Income $164.00 $9.975 $173.97
Percentage Increase +6.08%
I just hit the second thousand in annual dividend income. I felt like I needed to rush to get to a large dividend number at the start, and it looks like my hard work paid off as it gets easier and easier to invest in quality stocks every month for me.

Dividend Beginner

A 22 year old Canadian dividend growth investor striving for early financial independence; building as many passive income streams as early as possible.
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  • I like the purchase DB. I hold 860 shares of Corus. On vectorvest, it’s value is 15.05 so we’ll good here. It’s undervalued for sure.
    Happy for your purchase and keep it up! Cheers.

  • I love Corus and bought at around $9.50. Solid company with solid fundamentals. People hated it so much and still does not like it due to the regulatory pressure but I think it will catch up sooner or later. Good pick!

    Cheers!

    BeSmartRich

    • Hi bSR,

      Wow, you really got a great deal on that! I wouldn’t mind it dropping more and the dividend solidifying and picking up more. Definitely kind of feel like I should’ve bought more – but I do with the past couple of investments as I think I’ve been picking ’em right.

  • “I don’t feel as though children these days may have the same connection to the characters on screen as my generation did in the 90s” – It’s funny but I have been thinking the exact same thing over the last few years.
    Nice snag on Corus. Been something I have been looking at myself (if only I could find the extra cash!) and was kicking myself for not jumping into around the $9.50/9.80 mark not too long ago. Divy is great and sustainable I believe and I even think there is more meet on the bones and likely could see a SP hitting towards $15 and maybe $20 in the medium term.

    • Hey Aj,

      Good to know we’re on the same wavelength and I’m not the only one thinking this way about television. It’s not the same. But I guess, what can you expect?
      It’s too bad I didn’t notice the stock when it was trading that low. Looks like it really made a comeback, and I’ll gladly continue raking in the cash. $20 would be a crazy good increase. Looking forward to your predictions coming true.

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My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.