4 media stocks to own today

The media sector has produced more than its fair share of billionaires!

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Media has long been a sector for creating extensive wealth. One needs to look no further than the list of wealthiest Australians to see the benefits investments in the media sector have brought. Billionaire James Packer's family once owned a previous version of Nine Entertainment Co Holdings Ltd (ASX: NEC), billionaire Kerry Stokes controls Seven West Media Ltd (ASX: SWM) and Rupert Murdoch is a familiar name around the globe thanks to News Corp (ASX: NWS).

Put bluntly, businesses in some industries have a harder time earning a buck than in other industries. While it's been suggested by investor Warren Buffett that overall the airline industry has lost money, I'd hazard a guess that the media industry has overall made significant profits. With that in mind, after reviewing the domestic media sector, here are four appealing media companies.

Cheap

Enero Group Ltd (ASX: EGG) is a marketing and communications company which stumbled after expanding too quickly. The company appears to have stabilised and set itself up for a more sustainable course going forward.

High Yield

Prime Media Group Limited (ASX: PRT) operates regional television and radio stations. According to Morningstar Research, the broadcaster is forecast to maintain its full-year dividend at 7.3 cents per share in the current financial year. With the shares trading at $1.03, this equates to a juicy fully franked dividend yield of 7.1%.

Quality

Amalgamated Holdings Limited (ASX: AHD) operates across a number of areas including hotels, cinemas and resorts. The stock ticks a number of boxes – a solid balance sheet, defensive stream of earnings, a history of growing its revenues and profits. It has a forecast fully franked dividend yield of 4.8% and a price-to-earnings ratio of 16.4.

Growth

REA Group Ltd (ASX: REA) owns and operates a number of websites in Australia, Europe and Hong Kong. The best known of these is realestate.com.au. While REA's dominant market position in Australia will ultimately slow its domestic growth, REA's move into overseas markets makes its growth profile look strong for a number of years.

Foolish takeaway

Buying media stocks might not make you a billionaire, but investing in a sector known for its more successful business models is certainly a good place to start.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »