In the case of Corus, the TV and Radio business in Canada remains consolidated and somewhat stable, despite new rules recently put in place by the CRTC in which companies providing cable packages have been forced to trim down packages including a number of ancillary channels (including some provided by Corus) to just a basic bare-bones package, allowing consumers to pick and choose additional channels for a fee.
The rules went into place in early 2016, and since that time the share price of Corus has dropped approximately in half, leading to the elevated dividend yield and payout ratio higher than 100%.
While Corus has improved its earnings and free cash flow in previous quarters, the company is still not producing enough free cash flow to support its dividend, and is therefore one of the companies I will be monitoring moving forward. Any investor considering adding a small position of Corus should be extremely careful.