4 Familiar Stocks You Wouldn't Expect to Have High Yields
Utility stocks, real estate investment trusts and limited partnerships are magnetic because of their chunky yields, but let's look beyond the obvious high-payers. Let's check out a few investments generating high payouts in some unlikely places.
Six Flags (SIX) -- 5.1 percent yield
It seems as if you can't run an amusement park chain as a public company without rewarding your stakeholders with some spending money for the next time they hit the park. This can probably be attributed to Cedar Fair (FUN), which as a limited partnership shells out most of its profits as distributions. This translated into a head-turning yield of 5.7 percent.
Six Flags isn't too shabby, presently yielding more than 5 percent. Even SeaWorld (SEAS) is now brandishing a yield north of 4 percent, largely the result of losing nearly a third of its value after a poorly received quarterly report a few weeks ago.
Running a theme park isn't cheap. It takes frequent sizable investments during the off-seasons to beef up the attractions. However, Six Flags is finding a way to build out its gated attractions while still being able to return money to its shareholders.
Mattel (MAT) -- 4.3 percent yield
Barbie, Hot Wheels and American Girl are just some of the famous playthings produced by Mattel. Barbie sales have slowed in recent years, plunging 15 percent in Mattel's latest quarter, and having a few more hit toys and games this upcoming holiday season wouldn't hurt. The toy-making giant has been struggling lately, missing Wall Street's profit targets in each of the past three quarters.
Still, toy makers apparently don't play games when it comes to their payouts. Rival Hasbro (HAS) -- the toy company behind Transformers, Nerf and other diversions -- yields an impressive 3.5 percent.
Regal Entertainment (RGC) -- 4.3 percent yield
Movie theater stocks may not seem like a hotbed for quarterly disbursements, but it seems as if strong box office sales result in money trickling down to theater owners. Regal Entertainment watches over 574 movie theaters housing 7,349 screens.
Regal is coming off a rough quarter in which revenue and adjusted earnings declined. Movie customers aren't upgrading to premium 3-D and supersized screenings the way that they used to, and Regal's been slow to update its concessions to make them more irresistible.
Healthy payouts appear to be the feature attraction for exhibitors since growth has been a challenge. Regal rival AMC (AMC) offers a reasonable 3.4 percent yield. It's not as generous as Regal, but it's still more than just popcorn money. Then again, going by what multiplexes typically charge, maybe that's not enough popcorn money.
Staples (SPLS) -- 4.2 percent yield
Office supplies have been a bad bet for investors. Despite industry consolidation that resulted in the second- and third-largest superstores merging last year and a general improvement in the corporate economy, market leader Staples and its peers have been disappointing.
Sales and adjusted earnings fell 2 percent and 27 percent, respectively, during Staples' latest quarter. It may not always be that way. Staples has responded by closing underperforming stores and widening its product offerings. It has also emphasized its online offerings that when combined with its local warehousing infrastructure can provide reliable next-day delivery through its own fleet of drivers.
Investors who believe that Staples will get it right can pick up the top dog at a beaten-down price that currently offers a better yield than most fixed-income investments. Staples means business.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Hasbro and Mattel. The Motley Fool owns shares of Hasbro and Staples. Try any of our Foolish newsletter services free for 30 days.