Meredith's Shares Surged: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of publisher and broadcaster Meredith (NYS: MDP) jumped as much as 21% in early trading and remain on a strong 12% plateau amid heavy market action.

So what:First-quarter results, reported early this morning, blew past Street estimates on both the top and bottom lines by modest margins. If that doesn't seem terribly exciting, Meredith also boosted its dividend by 50% and authorized a fresh $100 million share buyback program.

Now what: Digital publishing is the primary driver of stable sales in the face of swooning ad markets, and Meredith will lean on the Apple (NAS: AAPL) iPad and Barnes & Noble (NYS: BKS) Nook Color as hard as possible. With or without that crutch, the parent of Better Homes and Gardens, Ladies' Home Journal, and many other female-centric media brands remains a veritable cash machine -- the new 5.5% dividend yield looks safe.

Interested in more info about Meredith? Click here to add it to My Watchlist.

At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners