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Posted On: 05/05/2017 2:11:41 PM
Post# of 2218
$AHC The Best Cheap Stocks to Buy for $10 or Less: A. H. Belo (AHC)
Stock Price: ~$6.20
A.H. Belo Corporation (NYSE:AHC) looks like a classic value trap.
The operator of the Dallas Morning News is seeing revenue and profit decline — unsurprising, given the nature of the newspaper industry at the moment.
But AHC has no debt, manageable pension expense and significant real estate assets. Its legacy headquarters building in downtown Dallas is going to be up for sale shortly, and the company’s digital businesses, while small, are growing nicely.
A.H. Belo isn’t a perfect story, and its valuation probably could be a little better. But a 5.2% dividend yield helps the stock’s attractiveness, and historically the company has paid special dividends with the proceeds from its asset sales. Should the headquarters building sell, then, another dividend could follow — and provide another boost to AHC stock.
Stock Price: ~$6.20
A.H. Belo Corporation (NYSE:AHC) looks like a classic value trap.
The operator of the Dallas Morning News is seeing revenue and profit decline — unsurprising, given the nature of the newspaper industry at the moment.
But AHC has no debt, manageable pension expense and significant real estate assets. Its legacy headquarters building in downtown Dallas is going to be up for sale shortly, and the company’s digital businesses, while small, are growing nicely.
A.H. Belo isn’t a perfect story, and its valuation probably could be a little better. But a 5.2% dividend yield helps the stock’s attractiveness, and historically the company has paid special dividends with the proceeds from its asset sales. Should the headquarters building sell, then, another dividend could follow — and provide another boost to AHC stock.
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