Canadian investors on the hunt for income may be spurred to chase dividend stocks with the highest yields. These stocks are always alluring, but investors should also proceed with caution. Many stocks with very high-income yields are less stable and thus less dependable over the long term. Moreover, the equities themselves tend to be more volatile.
Corus Entertainment (TSX:CJR.B) is the dividend stock I want to zero-in on in the middle of January. This Toronto-based media and content company operates specialty and conventional television networks, and radio stations in Canada and around the world. Its shares have plunged 63% year-over-year as of close on January 13. The stock has dropped 13% so far in the New Year.
The company unveiled its first quarter fiscal 2023 earnings last week on January 13. It saw consolidated revenues fall 7% year-over-year to $431 million. Meanwhile, consolidated segment profit plunged 26% to $131 million. Despite its less-than-stellar earnings, there is reason for optimism at Corus going forward.
This legacy media company has acknowledged its need to pursue growth in the streaming space. It recently launched Pluto TV, an ad-supported streaming service that is owned and operated by the Paramount Streaming division of Paramount Global. Corus also bolstered its STACKTV offering with the addition of a suite of Disney channels.
Shares of this dividend stock last had an RSI of 35, which puts Corus just outside of technically oversold territory. Better yet, Corus offers a quarterly dividend of $0.06 per share. That represents a monster 12% yield. Corus has a steep hill to climb to compete in the streaming space, but I’m looking to snatch it up as it offers mouth watering value and income right now.
