Corus Entertainment Inc. (TSX:CJR.B) is a Canadian media and entertainment company which has maintained a relatively high yield in recent years.
While Corus’ share price has decreased by more than 10% year to date, investors have seen a rebound from lows experienced two years ago as the market has begun to positively ascribe value to the streamlining of operations by Corus’ management team.
The company has sold off many of its secondary and tertiary business lines, choosing to focus on children’s programming and the woman/home segment of the market.
While long term risks to the company’s cash flows remain (i.e. the sector wide cord cutting phenomenon and pick and pay phenomenon in Canada specifically), picking up a juicy near double-digit dividend in expectation of cash flow improvement is a strategy which can reasonably be seen as compelling for some contrarian investors.
While a dividend cut may not be on the horizon, I just don’t see enough value in this name yet to warrant an investment at current levels.